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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: