Flag whether a state franchise filing may sit on top of the federal disclosure
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Record the franchisor's principal business address as printed, the location of the offered outlet and whether the file contains a state registration or exemption paper. Do not name a state statute and do not say the offer is registered.
- What the lawyer must review
- 16 C.F.R. § 436.10(b) says the FTC does not intend to preempt state or local franchise practices laws except to the extent of any inconsistency with Part 436. A law is not inconsistent if it affords prospective franchisees equal or greater protection, such as registration of disclosure documents or more extensive disclosures. Section 436.10(a) says the Commission does not approve the legality of a matter the franchisor discloses, and that Section 5 of the FTC Act can still require material information outside the document. You identify the state and read its statute. The federal furnishing rule in § 436.2 is a separate check.
Who does what
| Role | What they do |
|---|---|
| Assistance | Do not begin AI assistance until the responsible lawyer has defined and confirmed its permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Check the current court or regulator requirements, prescribed form and attachments for the intended document and filing.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.