---
title: "Checklist for an annual advertising-fund statement"
url: "https://ailawframework.com/practice/franchising-and-distribution/prepare-the-annual-specific-purpose-fund-statement-and-audit-pack/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A34-E20261018-4-US"
practice_area: "Franchising & Distribution"
tier: "red"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Checklist for an annual advertising-fund statement

> 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…

Canonical page: https://ailawframework.com/practice/franchising-and-distribution/prepare-the-annual-specific-purpose-fund-statement-and-audit-pack/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 | 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 | United States |
| Applies to | [Prepare the annual specific purpose fund statement and audit pack](https://ailawframework.com/practice/franchising-and-distribution/prepare-the-annual-specific-purpose-fund-statement-and-audit-pack.md) |

## Checking plan

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

## Notes

- The tool writes nothing that is given to franchisees.
- Do not treat fund percentages as an Item 19 representation.

## 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)

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