1. Facts, Questions, and Answers
for Franchisors
Annual FDD updates and
disclosure

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

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

4. Frequently asked questions
about annual FDD updates and
disclosure

5. QUESTION:
If the franchise disclosure
document (FDD) is not updated 120
days after the close of the fiscal
year, can I still sell franchises?

6. ANSWER:
No. If the FDD is not
updated, the franchisor must
stop selling franchises until the
FDD is updated.

7. QUESTION:
If a prospective franchisee has
already received the previous
year’s FDD, do I need to give the
prospect an updated FDD?

8. ANSWER:
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.