Identify the state franchise registration the FTC rule leaves in place
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Record the place where the franchise will be located and any registration, exemption filing, or examiner comment in the file. Do not treat the federal rule as a national register or invent a state waiting period.
- What the lawyer must review
- 16 CFR 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. 16 CFR 436.10(a) says the Commission does not approve, or express an opinion on, the legality of any matter a franchisor may be required to disclose, and that franchisors may have further duties under section 5 of the FTC Act outside the disclosure document. The opened federal text creates no national franchise register and no period for joining one. No state registration statute was opened. The lawyer identifies the state where the franchise will be located and applies that state's statute. ABA Model Rules 1.1 and 5.3 and Formal Opinion 512 leave that work with the lawyer.
- Written for / version
- United States versionUS
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
- Obtain and inspect the relevant current official register or search result. Confirm identities, interests and the date and scope of the search.
- 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.
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