Build the pre-signing franchise disclosure timetable
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the file, list the date a disclosure document was furnished, the method and the proposed date of signature or payment. Do not count the days and do not say the sale may proceed.
- What the lawyer must review
- 16 C.F.R. § 436.2(a) makes it an unfair or deceptive act, for a franchise to be located in the United States or its territories and not exempted under subpart E, to fail to furnish the current disclosure document at least 14 calendar days before the prospective franchisee signs a binding agreement with, or makes any payment to, the franchisor or an affiliate in connection with the proposed sale. Section 436.2(b) requires each unilaterally and materially revised agreement to be furnished at least seven calendar days before signing. Changes that arise out of negotiations initiated by the prospective franchisee do not trigger that seven-day period. Subpart E was not opened. You count the days. Section 436.10(b) leaves a state law in place when it gives prospective franchisees equal or greater protection.
- 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
- Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- 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