Check the solvency statement and financial reports before the disclosure document is given
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the draft disclosure document, list whether the financial-details section contains a solvency statement, financial reports and an independent audit report, and the period each report covers. Quote any statement that figures are missing. Do not calculate a due date for the annual update.
- What the lawyer must review
- The lawyer decides whether the financial details can be given to this prospective franchisee, and whether a new financial fact has to be given, with replacement documents, before signing. The lawyer does not invent a calendar due date.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | From the draft disclosure document, list whether the financial-details section contains a solvency statement, financial reports and an independent audit report, and the period each report covers. Quote any statement that figures are missing. Do not calculate a due date for the annual update. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Do not write a due date. The page says the annual update date depends on several factors.
- Do not apply the four-month specific-purpose fund rule to the disclosure document.
- If the financial details changed after the draft was prepared, the prospective franchisee needs the new documents before signing.
- Leave the 14-day notice to existing franchisees to the catalogue task on materially relevant facts.
Sources
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.
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