---
title: "Compare a marketing-fund report with Item 11 topics"
url: "https://ailawframework.com/practice/franchising-and-distribution/draft-a-marketing-fund-report-review/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A34-B7-5-US"
practice_area: "Franchising & Distribution"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Compare a marketing-fund report with Item 11 topics

> Mark each Item 11 advertising-fund topic as addressed or not addressed in the report, and cite the report page. Write no new Item 11 text and no performance claim.

Canonical page: https://ailawframework.com/practice/franchising-and-distribution/draft-a-marketing-fund-report-review/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Franchising & Distribution](https://ailawframework.com/practice/franchising-and-distribution.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | Mark each Item 11 advertising-fund topic as addressed or not addressed in the report, and cite the report page. Write no new Item 11 text and no performance claim. |
| What the lawyer must review | Item 11 of 16 C.F.R. section 436.5 requires the franchisor to describe the advertising program. For any other advertising fund the franchisee must join, the disclosure states who contributes, how much the franchisee contributes and whether others differ, whether franchisor-owned outlets contribute on the same basis, who administers the fund, whether it is audited and when, whether financial statements are available to the franchisee, and how funds were used in the most recently concluded fiscal year, including percentages for production, media placement, administrative expenses, and any other use. If not all funds are spent in the year they accrue, the disclosure states how the remainder is used and whether franchisees receive a periodic accounting. It also states the percentage, if any, used principally to solicit new franchise sales. The tool compares the report with those topics. It does not rewrite the disclosure. |
| Written for | United States |
| Applies to | [Draft a marketing-fund report review](https://ailawframework.com/practice/franchising-and-distribution/draft-a-marketing-fund-report-review.md) |

## Checking plan

- What the AI does: Mark each Item 11 advertising-fund topic as addressed or not addressed in the report, and cite the report page. Write no new Item 11 text and no performance claim.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- This comparison is not an Item 19 financial-performance representation.
- eCFR is the text that was opened. Confirm the official edition before reliance.

## Sources

- [16 C.F.R. Part 436, Franchise Rule (eCFR)](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) (checked 2026-10-22)
- [FTC Franchise Rule](https://www.ftc.gov/legal-library/browse/rules/franchise-rule) (checked 2026-10-22)
- [ABA Formal Opinion 512, Generative Artificial Intelligence Tools (29 July 2024)](https://www.americanbar.org/content/dam/aba/administrative/professional_responsibility/ethics-opinions/aba-formal-opinion-512.pdf) (checked 2026-10-22)

## Forms and precedents for this task

| Form or precedent | Kind | AI level | Summary |
| --- | --- | --- | --- |
| [Marketing and other specific purpose fund: annual statement, audit and franchisee vote (Franchising Code ss 31 and 61)](https://ailawframework.com/precedents/franchising-and-distribution/specific-purpose-fund-annual-statement-and-audit.md) | Checklist | Yellow | Year-end pack for a marketing, technology or other specific purpose fund: the statement format the Code requires, the 4-month and 30-day deadlines, the audit or the 75% franchisee opt-out vote, the… |

Signed-in accounts can read the full text of each one.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*