---
title: "Compare a draft franchise agreement with the term sheet and the disclosure document"
url: "https://ailawframework.com/practice/franchising-and-distribution/draft-or-review-a-franchise-agreement-from-the-disclosure-and-the-term-s/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A34-T1-R3-US"
practice_area: "Franchising & Distribution"
tier: "red"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Compare a draft franchise agreement with the term sheet and the disclosure document

> 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.

Canonical page: https://ailawframework.com/practice/franchising-and-distribution/draft-or-review-a-franchise-agreement-from-the-disclosure-and-the-term-s/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 | Red: Lawyer writes; AI may check, clarify or collect data |
| 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 | United States |
| Applies to | [Draft or review a franchise agreement from the disclosure and the term sheet](https://ailawframework.com/practice/franchising-and-distribution/draft-or-review-a-franchise-agreement-from-the-disclosure-and-the-term-s.md) |

## Checking plan

- What the AI does: 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.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Item 9 is the franchisee's obligations. Item 17 is renewal, termination, transfer and dispute resolution.
- A distribution or dealer agreement that is not a franchise is outside Part 436. Decide that question before using this check.

## Sources

- [16 C.F.R. Part 436, including § 436.9(g) and Item 22](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) (checked 2026-10-22)
- [ABA Model Rule 1.1, Competence](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_1_competence/) (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 |
| --- | --- | --- | --- |
| [Pre-entry statements: receipt of the disclosure document and Code, and independent legal, business and accounting advice (Franchising Code ss 26 and 27)](https://ailawframework.com/precedents/franchising-and-distribution/pre-entry-statements-on-disclosure-and-independent-advice.md) | Form | Yellow | The signed statements a franchisor must hold before entering into a franchise agreement: the franchisee’s statement that it has received, read and understood the disclosure document and the Code,… |

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.*