---
title: "Make a working note of fees and territory from the disclosure document"
url: "https://ailawframework.com/practice/franchising-and-distribution/summarise-a-franchise-agreement-and-disclosure-document/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A34-B7-1-US"
practice_area: "Franchising & Distribution"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

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

> 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.

Canonical page: https://ailawframework.com/practice/franchising-and-distribution/summarise-a-franchise-agreement-and-disclosure-document/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 | 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 | United States |
| Applies to | [Summarise a franchise agreement and disclosure document](https://ailawframework.com/practice/franchising-and-distribution/summarise-a-franchise-agreement-and-disclosure-document.md) |

## Checking plan

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

## Notes

- A fee in Item 5 or Item 6 is copied, not recalculated.
- The note is not a financial-performance representation. Item 19 is a separate rule.

## Sources

- [16 C.F.R. Part 436, Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) (checked 2026-10-22)
- [ABA Formal Opinion 512, Generative Artificial Intelligence Tools (29 July 2024)](https://www.americanbar.org/content/dam/aba/administrative/professional_responsibility/ethics-opinions/aba-formal-opinion-512.pdf) (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.*