Map territory and online-channel clauses against Item 12
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Extract the agreement's territory, exclusivity and internet or other-channel clauses, and the matching Item 12 sentences, each with a page. Do not say a clause is enforceable.
- What the lawyer must review
- 16 C.F.R. § 436.5(l) requires disclosure of whether the franchisor grants an exclusive territory. For every territory, exclusive or not, it requires disclosure of restrictions on the franchisor soliciting or accepting orders inside the territory, including whether the franchisor or an affiliate has used or reserves the right to use other channels such as the internet, catalog sales, telemarketing or other direct marketing, under the franchisor's principal trademarks or under different trademarks. It also requires disclosure of restrictions on the franchisee soliciting outside the territory. You decide what the contract does. The tool only lines the words up.
- Written for / version
- United States versionUSCth
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes extracting and organising information and preparing preliminary structure or wording. Confirm the tool’s capability and 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