---
title: "Read the post-term non-compete disclosed in Item 17"
url: "https://ailawframework.com/practice/franchising-and-distribution/test-a-post-term-restraint-against-the-conditions-for-when-it-must-not-a/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A34-OB20261022-4-US"
practice_area: "Franchising & Distribution"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

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

> 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.…

Canonical page: https://ailawframework.com/practice/franchising-and-distribution/test-a-post-term-restraint-against-the-conditions-for-when-it-must-not-a/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 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 | United States |
| Applies to | [Test a post-term restraint against the conditions for when it must not apply](https://ailawframework.com/practice/franchising-and-distribution/test-a-post-term-restraint-against-the-conditions-for-when-it-must-not-a.md) |

## Checking plan

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

## Notes

- Item 17(r) is a disclosure of the contract. Enforceability is a separate question for the lawyer under state law.
- During-the-term covenants are a different Item 17 row. This task is the post-term row.
- The eCFR page says it is not an official legal edition of the CFR. The May 2008 guide says its advice is not binding on the Commission.

## 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 Compliance Guide (May 2008)](https://www.ftc.gov/system/files/documents/plain-language/bus70-franchise-rule-compliance-guide.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.*