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What Is a Franchise Compliance Program?

Franchise compliance programs are the business, legal, and franchise sales systems and procedures implemented by a franchisor to ensure and document compliance with the Federal Franchise Rule and state-specific franchise and business opportunity laws. As a franchisor, you should be working with your business and legal teams to establish systems and procedures as to the following franchise compliance items:

  • Preparing and maintaining a current and updated franchise disclosure document (FDD);
  • Maintaining your state-specific FDD registrations, filings, and renewals;
  • Documenting compliance with the FDD and agreement disclosure periods;
  • Documenting and enforcing franchise sales processes and rules to be followed by your franchise sales team;
  • Developing and maintaining your operations manual.
Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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