Checklist for an annual advertising-fund statement

Key facts

Human involvement: RedLawyer-led
How AI is used: Mark whether a draft statement covers who contributes, whether franchisor-owned outlets contribute on the same basis, who administers the fund, whether it is audited and when, whether statements are available, how funds were used with the stated percentages, how unspent funds are used, and any percentage used to solicit new franchise sales. Write no statement sentence.
What the lawyer must review: Those topics are the Item 11 advertising-fund disclosures in 16 C.F.R. section 436.5. A statement that will be given to franchisees is written by the lawyer. The checklist is not the statement and is not an Item 19 financial-performance representation. Section 436.7(a) requires the disclosure document to be revised within 120 days after the close of the fiscal year. That updating rule is not itself the fund statement.
Written for / version: United States versionUS

Who does what

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.

Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
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.