Read Item 17 on termination and the franchisee's end obligations
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Extract Item 17 rows for termination by the franchisor and for the franchisee's obligations on termination or non-renewal, with the contract section each row cites. Quote any footnote that describes a policy where the agreement is silent. Do not calculate compensation.
- What the lawyer must review
- 16 CFR 436.5(q) requires a table titled THE FRANCHISE RELATIONSHIP that discloses the contract provisions it lists, including termination by the franchisor without cause, termination by the franchisor with cause, and the franchisee's obligations on termination or non-renewal. If an item is not applicable, the franchisor states "Not Applicable." If the agreement is silent but the franchisor offers a benefit as a policy, a footnote must describe the policy and whether it is subject to change. The table tells the reader to read the agreements attached to the disclosure document. The opened text of Part 436 sets no compensation formula for an early exit from the network. The lawyer reads the attached agreements and decides what, if anything, is payable. 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
| Role | What they do |
|---|---|
| Assistance | Potential support includes extracting and organising information and assembling provisional schedules. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.
Related tasks
Draft or review a franchise disclosure document against the prescribed headingsCheck the franchisor's disclosure and any registration the jurisdiction requiresDraft or review a franchise agreement from the disclosure and the term sheetBuild a franchisee due-diligence issues list from the disclosure pack