AI Disclaimer

1. Overview

FranchiseStack ("we," "us," "our," or the "Platform"), accessible at franchisestack.ai, is an AI-powered franchise intelligence platform operated by Steeled Inc., a Delaware Corporation. The Platform leverages artificial intelligence technologies, including but not limited to models developed by Anthropic (Claude) and other machine learning providers, to deliver franchise analysis, insights, and tools to our users.

Specifically, FranchiseStack uses AI to:

• Analyze franchise opportunities across thousands of brands and industries
• Parse, summarize, and extract key data points from Franchise Disclosure Documents (FDDs)
• Generate return-on-investment (ROI) projections, financial models, and payback period estimates
• Match prospective investors with franchise opportunities based on user-provided profiles including capital availability, skills, lifestyle preferences, and investment goals
• Provide territory intelligence including demographic analysis, competitor density mapping, and market saturation scoring
• Facilitate due diligence tracking and franchise comparison workflows

This AI Disclaimer governs your use of all AI-generated content, analysis, projections, recommendations, scores, and other outputs produced by or through the Platform. By accessing or using FranchiseStack, you acknowledge that you have read, understood, and agree to the terms of this disclaimer.

2. Nature of AI-Generated Content

All content, analysis, scores, summaries, projections, recommendations, match results, and other outputs generated by FranchiseStack's AI systems are provided strictly for informational and educational purposes only. AI-generated content on this Platform is designed to assist users in their independent franchise research and decision-making process.

AI systems generate outputs based on patterns learned from training data and the inputs provided to them. These outputs reflect computational analysis and pattern recognition, not professional judgment, fiduciary consideration, or personalized advice tailored to your specific legal, financial, or personal circumstances.

3. Limitations of AI Analysis

While FranchiseStack strives to deliver accurate and useful AI-powered analysis, users must understand the inherent limitations of artificial intelligence systems:

• Errors and inaccuracies: AI models can and do produce incorrect outputs. Analysis may contain factual errors, mathematical mistakes, or flawed logical reasoning that could lead to incorrect conclusions about a franchise opportunity.
• Hallucinations: AI systems may generate information that appears plausible but is entirely fabricated. This includes inventing statistics, citing non-existent sources, or producing data points that do not correspond to any real-world information. This is a known and well-documented limitation of large language models.
• Misinterpretation of documents: When analyzing FDDs and other legal or financial documents, AI may misinterpret contractual language, miss critical provisions, incorrectly categorize fee structures, or fail to identify significant risk factors disclosed in the documents.
• Outdated information: AI models are trained on data with a knowledge cutoff. Franchise systems, their financial performance, fee structures, litigation history, and other critical factors change over time. AI analysis may not reflect the most current information available.
• Incomplete analysis: AI cannot account for every variable that affects franchise performance. Local market conditions, personal circumstances, undisclosed franchisor issues, regulatory changes, and countless other factors may not be captured in any AI-generated analysis.
• Projection limitations: All financial projections, ROI estimates, and payback period calculations are mathematical estimates based on assumptions and historical data. They are not guarantees, forecasts, or promises of future performance.

4. FDD Analysis Disclaimer

FranchiseStack's AI-powered FDD analysis features are designed to help users more quickly review and understand the contents of Franchise Disclosure Documents. The AI may summarize sections, extract key data points (such as Item 19 financial performance representations, Item 5 initial fees, Item 6 ongoing fees, and Item 3 litigation history), and highlight areas of potential concern.

AI may fail to identify critical clauses, misinterpret legal language, overlook conditional provisions, or present information out of context. FDD provisions are interconnected, and understanding any single item requires consideration of the document as a whole. The AI does not and cannot replicate the judgment of an experienced franchise attorney.

Furthermore, FDDs are updated annually by franchisors, and the version analyzed by the AI may not be the most current version. Always verify that you are reviewing the most recently filed FDD with your state's franchise regulatory authority, if applicable.

5. Financial Projections Disclaimer

FranchiseStack provides AI-powered ROI calculators, financial modeling tools, and projected payback period estimates. These tools process data including disclosed Item 19 financial performance representations (where available), user-provided assumptions about operating costs and revenue, territory demographic data, and historical industry benchmarks.

Financial projections produced by the Platform use assumptions that may not reflect your actual circumstances. These assumptions may include average revenue figures that do not apply to your territory, cost estimates that differ from real-world expenses in your market, growth rates that may not materialize, and industry benchmarks that may not be comparable to the specific franchise system you are evaluating.

You should work with a qualified Certified Public Accountant (CPA) or financial advisor who has experience with franchise investments to develop financial projections based on your specific situation, local market conditions, and the actual terms of the franchise agreement you are considering.

No earnings claim is made or implied by any projection, score, estimate, or financial figure displayed on FranchiseStack.

6. Franchise Matching Disclaimer

FranchiseStack's AI matching engine generates compatibility scores and ranked recommendations based on the investor profile you create on the Platform. These profiles include self-reported data such as your available capital, desired involvement level (owner-operator, semi-absentee, or fully absentee), industry preferences, geographic targets, risk tolerance, and lifestyle goals.

You should understand the following about the matching process:

• Match scores are algorithmic: Scores are produced by mathematical models that compare your profile attributes against franchise system characteristics. A high match score does not mean a franchise is a good investment for you, and a low match score does not mean a franchise should be excluded from your consideration.
• Profile accuracy depends on you: The quality of AI matching is directly dependent on the accuracy, completeness, and honesty of the information you provide in your investor profile. Inaccurate or incomplete inputs will produce unreliable match results.
• Publicly available data: Franchise system characteristics used in matching are derived from publicly available information including FDDs, franchise directories, and industry databases. This information may be outdated, incomplete, or inaccurate.
• One factor among many: AI matching should be treated as one input in your decision-making process. It cannot replace personal research, validation calls with existing franchisees, attendance at discovery days, professional legal and financial review, or your own independent judgment about a franchise opportunity.
• No endorsement: A match recommendation is not an endorsement of any franchise brand, franchisor, or franchise opportunity. FranchiseStack does not endorse, recommend, or guarantee any specific franchise system.

7. No Professional Relationship

Your use of FranchiseStack does not create any professional, fiduciary, advisory, or agency relationship between you and Steeled Inc., a Delaware Corporation, or any of its affiliates, employees, contractors, or AI systems.

Specifically, your use of the Platform does not create:

• A broker relationship: FranchiseStack is not a licensed franchise broker in any jurisdiction. The Platform provides information tools, not brokerage services. While the Platform may earn referral fees from franchisors for successful placements, this does not create a broker-client relationship with you.
• An advisor relationship: FranchiseStack is not a registered investment advisor, financial advisor, or business consultant. The Platform provides data and analysis tools, not personalized advice.
• An attorney-client relationship: FranchiseStack does not provide legal advice and is not a law firm. AI analysis of FDDs or franchise agreements does not constitute legal review or legal counsel.
• A fiduciary relationship: FranchiseStack owes no fiduciary duty to any user. We are not obligated to act in your best interest, disclose conflicts of interest beyond what is required by law, or prioritize your financial outcomes in any way.

You are solely responsible for engaging qualified professionals, including franchise attorneys, CPAs, financial advisors, and franchise consultants, as appropriate for your situation.

8. No Investment Advice

Franchise investments involve significant financial risk, including the potential loss of your entire investment. The decision to invest in any franchise system is a personal financial decision that should be made in consultation with qualified professionals who understand your complete financial picture, risk tolerance, and investment objectives.

FranchiseStack does not solicit, recommend, or endorse the purchase of any franchise, security, or investment product. The Platform does not make personalized investment recommendations, does not consider your complete financial situation, and does not assess suitability of any investment for any individual user.

Nothing on this Platform should be construed as an offer to sell or a solicitation of an offer to buy any franchise, security, or financial product.

9. Third-Party Data

FranchiseStack aggregates and processes data from a variety of publicly available and third-party sources to power its AI analysis. These sources may include publicly filed Franchise Disclosure Documents, franchise directories and databases, U.S. Census Bureau demographic data, Bureau of Labor Statistics economic data, industry publications and research reports, franchise brand websites and marketing materials, and other publicly accessible information.

Regarding this data, you should understand:

• No guarantee of accuracy: We do not guarantee the accuracy, completeness, reliability, or timeliness of any third-party data used in our analysis. Data sourced from external providers may contain errors, may be outdated, or may have been modified since the time of collection.
• Data may be stale: Franchise systems evolve continuously. Fee structures change, territories are reassigned, litigation is filed or resolved, and financial performance fluctuates. The data available to our AI may not reflect the most current state of any franchise system.
• Interpretation risks: AI processes raw data through models that make assumptions about categorization, normalization, and comparison. These interpretive layers can introduce additional inaccuracies beyond those present in the source data.
• Not comprehensive: No data aggregation platform, including FranchiseStack, can capture every piece of information relevant to a franchise investment decision. Material information may exist that is not reflected in our data sources.

We are not responsible for any errors, omissions, or inaccuracies in third-party data or for any decisions made in reliance on such data.

10. User Responsibility

You bear sole and complete responsibility for any and all franchise investment decisions you make. FranchiseStack provides tools and information to support your research process, but the ultimate decision to invest in, purchase, or enter into any franchise agreement rests entirely with you.

By using the Platform, you acknowledge and agree that:

• You will not rely solely on any AI-generated output from FranchiseStack when making investment decisions.
• You will conduct your own independent due diligence on any franchise opportunity you are considering, including reading the complete FDD, speaking with current and former franchisees, attending discovery days, and investigating the franchisor's background.
• You will engage qualified professionals, including a franchise attorney and a CPA experienced with franchise investments, before signing any franchise agreement or making any financial commitment.
• You understand that franchise investments carry substantial financial risk, including the risk of losing your entire investment, and that no AI system can eliminate or fully quantify these risks.
• You will verify all AI-generated information against primary sources before making decisions based on that information.
• You understand that FranchiseStack, Steeled Inc., a Delaware Corporation, and their officers, employees, and contractors are not liable for any losses, damages, or negative outcomes resulting from your reliance on AI-generated content or your franchise investment decisions.

11. Human Review Recommended

We strongly recommend that every user of FranchiseStack engage the following professionals before committing to any franchise investment:

• Franchise attorney: A lawyer experienced in franchise law who can review the FDD, explain your rights and obligations under the franchise agreement, identify risks specific to your situation, negotiate terms on your behalf, and ensure compliance with state franchise registration and disclosure requirements.
• Certified Public Accountant (CPA): An accountant experienced with franchise businesses who can review the financial performance representations, develop realistic financial projections based on your market, advise on tax implications, help structure your entity, and assess whether the investment aligns with your financial capacity.
• Experienced franchisees: Current and former franchisees of the system you are considering are the most valuable source of real-world operational insight. The FDD (Item 20) provides contact information for current franchisees. We recommend speaking with at least 10-15 franchisees before making any decision.
• Financial advisor: If the franchise investment represents a significant portion of your net worth, a qualified financial advisor can help you assess whether the investment is appropriate given your overall financial situation, retirement goals, and risk tolerance.
• SBA lender or franchise financing specialist: If you intend to finance your franchise investment, a lender experienced with franchise loans can help you understand financing options, SBA loan requirements, and realistic debt service projections.

The cost of engaging these professionals is small relative to the size of a typical franchise investment ($50,000 to $1,000,000+) and can save you from costly mistakes that no AI system can prevent.

12. Updates to This Disclaimer

We may update this AI Disclaimer from time to time to reflect changes in our AI technology, the scope of AI-generated content on the Platform, applicable laws and regulations, or our business practices. When we make material changes to this disclaimer, we will update the "Effective Date" at the top of this page.

We encourage you to review this AI Disclaimer periodically to stay informed about how AI is used on FranchiseStack and the limitations that apply to AI-generated content. Your continued use of the Platform after any changes to this disclaimer constitutes your acceptance of the updated terms.

If we make changes that materially reduce your rights or significantly expand the scope of AI use on the Platform, we will make reasonable efforts to notify registered users via email or through a prominent notice on the Platform.

13. Contact

If you have questions, concerns, or feedback about this AI Disclaimer, the use of AI on the FranchiseStack platform, or the accuracy of any AI-generated content, please contact us:

Email: franchisestack@polsia.app

We are committed to transparency about how AI is used on our Platform and welcome your inquiries. When reporting concerns about AI-generated content, please include as much detail as possible about the specific output in question so we can investigate and improve our systems.

This AI Disclaimer is part of and supplements our Terms of Service and Privacy Policy. In the event of any conflict between this disclaimer and the Terms of Service, the Terms of Service shall control.