Critically important to every Franchisor is a compliance program and internal systems designed to insure that a current (and registered‚ if applicable) copy of your FDD is delivered to the prospective Franchisee. Although state Franchise laws vary and deviate from the Federal Franchise Rule‚ Franchisors should evaluate and consider with its Franchise lawyer‚ the following methods for FDD Delivery:
- Direct Delivery: A copy of the FDD was hand-delivered‚ faxed‚ email‚ or otherwise delivered to the prospective franchisee by the required date;
- Internet: Directions for accessing the FDD on the Internet were provided to the prospective franchisee by the required date; or
- Electronic Copy: A paper or tangible electronic copy (for example‚ computer disk or CD-ROM) was sent to the address specified by the prospective franchisee by first-class United States mail at least three calendar days before the required date.
Licensing vs. Franchising