Count 14 calendar days on a renewal only if it is a sale
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- If the lawyer has already treated the renewal or extension as a sale, record the disclosure date and the signing or payment date and count the calendar days. If the renewal has not been classed as a sale, stop and say so.
- What the lawyer must review
- The 14-calendar-day rule in 16 CFR 436.2(a) applies before the prospective franchisee signs a binding agreement with, or pays, the franchisor or an affiliate in connection with the proposed franchise sale. A renewal or extension is a sale only when 16 CFR 436.1(t) says so: there was an interruption in operation, or the new terms differ materially from the original agreement. The lawyer applies that definition first. Only then does the lawyer count the 14 calendar days. Item 23's receipt repeats the 14-calendar-day sentence for a franchise offer. ABA Model Rules 1.1 and 5.3 and Formal Opinion 512 leave the count 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
- 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