---
title: "Compare marketing-fund statements with the Item 11 disclosure"
url: "https://ailawframework.com/practice/franchising-and-distribution/review-marketing-fund-statements-against-the-disclosure-and-the-franchis/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A34-T1-R12-US"
practice_area: "Franchising & Distribution"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Compare marketing-fund statements with the Item 11 disclosure

> 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.…

Canonical page: https://ailawframework.com/practice/franchising-and-distribution/review-marketing-fund-statements-against-the-disclosure-and-the-franchis/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 | Yellow: Lawyer and AI draft together |
| 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 | United States |
| Applies to | [Review marketing-fund statements against the disclosure and the franchise rules](https://ailawframework.com/practice/franchising-and-distribution/review-marketing-fund-statements-against-the-disclosure-and-the-franchis.md) |

## Checking plan

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

## Notes

- A mismatch is a question for the lawyer, not a rewritten Item 11.
- Do not treat fund percentages as an Item 19 financial-performance 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)

## Forms and precedents for this task

| Form or precedent | Kind | AI level | Summary |
| --- | --- | --- | --- |
| [Marketing and other specific purpose fund: annual statement, audit and franchisee vote (Franchising Code ss 31 and 61)](https://ailawframework.com/precedents/franchising-and-distribution/specific-purpose-fund-annual-statement-and-audit.md) | Checklist | Yellow | Year-end pack for a marketing, technology or other specific purpose fund: the statement format the Code requires, the 4-month and 30-day deadlines, the audit or the 75% franchisee opt-out vote, the… |

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.*