Facts, Questions, and Answers for Franchisors

Annual FDD updates and disclosure

Franchisors are required to update their franchise disclosure document (FDD) 120 days from the close of their fiscal year.

FACT:

That means if your fiscal year ended December 31st, your FDD must be updated by April 30th.

FACT:

Frequently asked questions about annual FDD updates and

disclosure

If the franchise disclosure document (FDD) is not updated 120 days after the

close of the fiscal year, can I still sell franchises?

QUESTION:

No. If the FDD is not updated, the franchisor must stop selling

franchises until the FDD is updated.

ANSWER:

If a prospective franchisee has already received the previous

year’s FDD, do I need to give the prospect an updated FDD?

QUESTION:

Yes. If the prospective franchisee has not signed the franchise

agreement on the date that the updated FDD is issued, you should re-disclose the prospect with the

updated FDD.

ANSWER: