Make a working note of fees and territory from the disclosure document

Key facts

Human involvement
YellowClose supervision
How AI is used
Extract initial fees, other fees and the territory disclosure, each tied to the item and the page. Do not send the note to a prospective franchisee and do not add a sentence that is not in the document.
What the lawyer must review
16 C.F.R. § 436.5(e) is Item 5, initial fees, including whether they are refundable. Section 436.5(f) is Item 6, other fees the franchisee must pay to the franchisor or its affiliates, or that they impose or collect for a third party. Section 436.5(l) is Item 12, territory, including whether the franchise is for a specific location, any minimum territory, and whether an exclusive territory is granted. If no exclusive territory is granted, the rule requires a stated warning that the franchisee may face competition from other franchisees, franchisor-owned outlets, or other channels or brands the franchisor controls. You check every figure before the note is used. Opinion 512 requires that verification.
Written for / version
United States versionUS

Who does what

Who does what
RoleWhat they do
AssistancePotential support includes extracting and organising information. Confirm the tool’s capability and permitted scope.
LawyerSet the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output.

Checklist

  1. Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
  2. Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
  3. Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.

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