Compare marketing-fund statements with the Item 11 disclosure
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Line up each figure in the fund's financial statements with the Item 11 advertising-fund topics in the disclosure document. Note a topic the disclosure covers and the statements do not, or the reverse. Write no new disclosure.
- What the lawyer must review
- The Item 11 topics opened in 16 C.F.R. section 436.5 include who contributes to any other advertising fund, the franchisee's contribution and whether others differ, whether franchisor-owned outlets contribute on the same basis, who administers the fund, whether and when it is audited, whether statements are available to the franchisee, how funds were used in the most recently concluded fiscal year with the stated percentages, how unspent funds are used, and the percentage used principally to solicit new franchise sales. This task compares the statements with that disclosure. It is a different check from a narrative report review. The lawyer confirms both documents are the ones given to franchisees.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Consider narrowly defined preparation support after confirming 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
- 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