diff --git a/template/.toco/rules/README b/template/.toco/rules/README
index 7fa4c80..75ebf05 100644
--- a/template/.toco/rules/README
+++ b/template/.toco/rules/README
@@ -1,4 +1,4 @@
-The `.toco` directory is used to store agent rules. Only `.md` files are supported. The internal structure is defined as follows:
+The `.toco/rules` directory is used to store agent rules. Only `.md` files are supported. The internal structure under `.toco/rules` is defined as follows:
 
 `global/` Contains general rules applicable to all Agents. These rules take effect globally across the entire system.
 `toco/` Contains rules specific to the Toco Agent. These are used for high-level process control. Typically, no new rules need to be added here.