How does a franchisor make changes to an FDD?

A: A franchisor makes changes to an FDD by (a) making the changes to the necessary areas or (b) hiring someone experienced in properly creating FDD's and making changes to FDD's. Changes can be done to an FDD at any time but are required annually for most changes, quarterly for material changes, and immediately for changes concerning Item 19 (financial performance representations) of the FDD.

Depending on what the franchise rules and laws in states where the franchisor is in or does business in the FDD may need to be filed with certain states within a certain amount of days after the changes have been made. It is important to make sure the revised FDD has been filed with all appropriate parties and that any prospective franchisees have been notified of the updates to the FDD.

For additional information on our services for updating an FDD or for further information on your state franchise laws concerning updating an FDD contact franchise lawyer Charles N. Internicola at 1-800-976-4904 or request a copy of "The Franchise Formula: A Guide to Franchising Your Business in the New Economy".

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