Compare the franchise disclosure document with the franchise agreement
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Build a table of Item 17 summaries, fee figures and territory statements against the agreement section they cite. Mark where the words differ. Write no contract text and no disclosure text.
- What the lawyer must review
- 16 C.F.R. § 436.9(a) makes it an unfair or deceptive act under FTC Act section 5 for a covered franchise seller to make any claim that contradicts the required disclosure. Section 436.9(g) says the seller must not present for signing an agreement whose terms differ materially from the copy attached to the disclosure document, unless the seller told the prospect of the differences at least seven days before execution. You decide what is material. Opinion 512 requires you to open both documents for every row you rely on.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes summarising source material. Confirm the tool’s capability and 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
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- 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.
Related tasks
Draft or review a franchise disclosure document against the prescribed headingsCheck the franchisor's disclosure and any registration the jurisdiction requiresDraft or review a franchise agreement from the disclosure and the term sheetBuild a franchisee due-diligence issues list from the disclosure pack