Read the post-term non-compete disclosed in Item 17

Key facts

Human involvement
YellowClose supervision
How AI is used
Extract Item 17's row for non-competition covenants after the franchise is terminated or expires, the contract section it cites, and the summary the disclosure document gives. Do not decide whether the covenant is enforceable.
What the lawyer must review
16 CFR 436.5(q) requires Item 17 to disclose, in the franchise-relationship table, non-competition covenants after the franchise is terminated or expires, and to cross-reference the applicable provision of the franchise or related agreement. If the item is not applicable, the entry states "Not Applicable." The bold instruction tells the reader to read the provisions in the agreements attached to the disclosure document. The opened FTC text requires that disclosure. It does not void the covenant or apply a statutory test to it. The lawyer reads the attached covenant and the governing state law. ABA Model Rules 1.1 and 5.3 and Formal Opinion 512 leave that review with the lawyer.
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. Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
  2. Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
  3. Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
  4. Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.

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