Count the 14 calendar days before a franchise signing or payment
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Record the date the current disclosure document was furnished, the date of any binding agreement with the franchisor or an affiliate, and the date of any payment to either of them in connection with the proposed sale. Do not count a cooling-off period after signing.
- What the lawyer must review
- 16 CFR 436.2(a) makes it an unfair or deceptive act under section 5 of the FTC Act to fail to furnish the current disclosure document at least 14 calendar days before the prospective franchisee signs a binding agreement with, or makes any payment to, the franchisor or an affiliate in connection with the proposed franchise sale. Item 23's receipt includes that 14-calendar-day sentence. The lawyer counts the days on the documents in the file and decides whether an exemption in 16 CFR 436.8 applies. The opened rule is a pre-signing and pre-payment delivery rule. 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
- Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- 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