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Choose the event before reading its terms
Read the full referenced clause for the actual conditions, steps and consequences. The following events are different.
| Event | Question to answer from the actual agreement |
|---|---|
| Expiry or renewal | What happens at the end of the stated term, and what conditions apply to another term? |
| Early termination | What grounds, notice or other steps and consequences does the clause specify? |
| Transfer | What consent and other conditions apply to the proposed ownership change? |
| Noncompetition or disputes | What restrictions on competing work or dispute procedures apply, and what independent legal protections must also be checked? |
Disclosure does not settle enforceability
A successful operator cannot assume renewal is automatic or a sale is unrestricted. Equally, disclosure of a clause does not establish it can be enforced in every state or remove a non-waivable protection.
Check the law applicable to the actual relationship before relying on a restriction or exit route. There is no single nationwide notice or cure timetable supplied by this item.
Scope
- This explains the selected federal disclosure item. State and territorial requirements and the terms of the particular offer remain separate.
Next step
Identify the proposed event and read its actual clause, then check the independent state protections that could affect it.
Sources & review notes
Federal Franchise Rule
FTC overview · Compliance Guide · Guide PDF · Current regulation
Federal Trade Commission
Passage, dates and research notes
primary · Item 17: Renewal, termination, transfer and disputes
Describe briefly each contractual provision.
Current substantive item read in full from current eCFR. This guide explains selected management implications; it is not a substitute for all prescribed disclosure text.
Federal Trade Commission
Passage, dates and research notes
primary · section-436.6
Respond fully to each disclosure Item.
Current eCFR displayed through 2026-11-09; eCFR is authoritative but not the official legal edition.
Detailed rule records (1)
Item 17 summarises specified relationship provisions with contract cross-references: term, renewal, termination, transfer, noncompetition and dispute terms. It is a map of the documents, not confirmation that every clause is enforceable. Non-waivable state protections require separate review.
16 CFR §436.5(q): FDD Item 17Keep this reading in your learning library.
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This is a reading aid, not evidence of disclosure delivery, expertise or legal approval.