---
title: "Screen franchise sales statements against 16 CFR 436.9"
url: "https://ailawframework.com/practice/franchising-and-distribution/screen-an-agreement-for-terms-the-code-says-should-not-be-included/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A34-OB20261022-11-US"
practice_area: "Franchising & Distribution"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Screen franchise sales statements against 16 CFR 436.9

> List oral and written statements to the prospective franchisee, any financial performance figure, any disclaimer of the disclosure document, and any deposit-refund clause.…

Canonical page: https://ailawframework.com/practice/franchising-and-distribution/screen-an-agreement-for-terms-the-code-says-should-not-be-included/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 | List oral and written statements to the prospective franchisee, any financial performance figure, any disclaimer of the disclosure document, and any deposit-refund clause. Map each item to a paragraph of 16 CFR 436.9 for the lawyer. Do not rewrite the statements. |
| What the lawyer must review | 16 CFR 436.9 lists additional prohibitions for a franchise seller covered by Part 436. They include a claim that contradicts a required disclosure; a misrepresentation that a person bought or operated the franchise or can give an independent and reliable report; a financial performance representation without a reasonable basis, written substantiation, and inclusion in Item 19, together with the extra disclosures and the admonition that a new franchisee's results may differ; failing to make Item 19 substantiation available on reasonable request; the early-delivery and quarterly-update duties; presenting a materially different agreement without the seven-day notice in paragraph (g); disclaiming or requiring a waiver of reliance on a representation in the disclosure document or its exhibits or amendments; and failing to return funds or deposits as the disclosure document or the agreements describe. Paragraph (h) does not stop a prospective franchisee from voluntarily waiving specific contract terms during negotiations. These are conduct prohibitions. They are not a list of contract clauses the rule strikes out. The lawyer makes each call. ABA Model Rules 1.1 and 5.3 and Formal Opinion 512 leave that review with the lawyer. |
| Written for | United States |
| Applies to | [Screen an agreement for terms the Code says should not be included](https://ailawframework.com/practice/franchising-and-distribution/screen-an-agreement-for-terms-the-code-says-should-not-be-included.md) |

## Checking plan

- What the AI does: List oral and written statements to the prospective franchisee, any financial performance figure, any disclaimer of the disclosure document, and any deposit-refund clause. Map each item to a paragraph of 16 CFR 436.9 for the lawyer. Do not rewrite the statements.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- 16 CFR 436.9 prohibits specified sales conduct. It does not publish a list of forbidden contract terms.
- A voluntary waiver of a specific contract term during negotiations is the proviso in 16 CFR 436.9(h). A waiver of reliance on the disclosure document is the prohibition.
- The eCFR page says it is not an official legal edition of the CFR.

## Sources

- [eCFR, 16 CFR Part 436, Disclosure Requirements and Prohibitions Concerning Franchising](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) (checked 2026-10-22)
- [FTC Franchise Rule page, 16 CFR Parts 436 and 437](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.*