Compare a draft franchise agreement with the term sheet and the disclosure document
Key facts
- Human involvement
- RedLawyer-led
- How AI is used
- List each term-sheet point, the agreement clause that deals with it, and any Item 9 or Item 17 summary that does not match the clause. Write no clause.
- What the lawyer must review
- You write or accept every clause that will be signed. 16 C.F.R. § 436.9(g) requires the seller to tell the prospect of material differences between the agreement presented for signing and the copy attached to the disclosure document, at least seven days before execution. Item 22 attaches the proposed agreements, including the franchise agreement. Formal Opinion 512 and Model Rule 1.1 do not allow you to adopt generated contract text you have not read. State relationship statutes may restrict termination or non-renewal; this version does not state those statutes.
- Written for / version
- United States versionUSCth
Who does what
| Role | What they do |
|---|---|
| Assistance | Supporting preparation only. Limit any support to organising, indexing or comparing the source material. Confirm the tool’s capability and permitted scope. The tool writes nothing into the document. Substantive advice, judgement and any restricted content remain with the responsible human. |
| Lawyer | Perform the substantive analysis and decisions. Independently check any permitted supporting work and approve the exact output for its intended use. |
Checklist
- 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.