Under the Federal Franchise Rule an FDD expires 120 days after the end of your fiscal year which is April 30th if you operate on a fiscal calendar year. Once your FDD expires you must stop selling franchises. You must also evaluate when your FDD registrations and filings expire and require renewal at the state level.
Below is a chart listing the FDD registration, filing, and renewal requirements on a state-by-state basis, including FDD expiration dates:
|State||Registration or Filing State||State Expiration Dates|
|California||Registration||Annual registration required. Expires 110 days after your fiscal year end.|
|Connecticut||Registration / Exemption||If you have a federally registered trademark, then one-time exemption filing that does not expire. If you do not have a federally registered trademark then you must register annually. Registration expires 1 year from registration effective date.|
|Florida||Filing||Annual filing required. Expires 1 year from filing effective date.|
|Hawaii||Registration||Annual registration required. Expires 90 days after your fiscal year end.|
|Illinois||Registration||Annual registration required. Expires 120 days after your fiscal year end.|
|Indiana||Registration||Annual registration required. Expires 1 year from registration effective date.|
|Kentucky||Filing||One time filing only; no expiration.|
|Maine||Filing / Exemption||If you have a federally registered trademark, then no filing required. If you do not have a federally registered trademark then filing required. Filing expires 1 year from filing effective date.|
|Maryland||Registration||Annual registration required. Expires 1 year from registration effective date.|
|Michigan||Registration||Annual notice filing required. Expires 1 year from notice filing date.|
|Minnesota||Registration||Annual registration required. Expires 120 days after your fiscal year end.|
|Nebraska||Filing||One time filing; no expiration.|
|New York||Registration||Annual registration required. Expires 120 days after your fiscal year end.|
|North Dakota||Registration||Annual registration required. Expires 120 days after your fiscal year end.|
|Rhode Island||Registration||Annual registration required. Expires 1 year from registration date; must submit renewal 30 days prior to expiration.|
|South Carolina||Filing / Exemption||One time filing if you have a registered trademark.|
|South Dakota||Filing||Annual filing required. Expires 1 year from filing effective date.|
|Texas||Filing||One time filing; no expiration.|
|Utah||Filing||Annual Filing is required. Expires 1 year from filing effective date.|
|Virginia||Registration||Annual registration required. Expires 1 year from registration effective date.|
|Washington||Registration||Annual registration required. Expires 1 year from registration effective date.|
|Wisconsin||Registration||Annual registration required. Expires 1 year from registration effective date.|
Many times a conflict exists between the date that your FDD must be updated under the federal franchise rule and the date that your state registrations and filings must be updated.
Using Virginia State as an Example: If, for example, your franchise company operates on a fiscal calendar year basis and your most recent Virginia state registration occurred on October 1st. Under the federal 120-day rule, your FDD will expire on April 30th. Even though under Virginia law your registration lasts for one year and will remain effective until October 1st, as of April 30th your FDD will have expired and you must stop selling franchises in Virginia on April 30th. In this example, prior to April 30th the appropriate course of action is to file for FDD registration renewal with Virginia. At the time of making this filing you could request that Virginia change the effective date of your registrations so that it is in sync with the federal 120-day requirement.
If there is a material change in the information disclosed in your FDD, then you must update your FDD within the next quarter. Once updated, you will be required to update your state registrations through a post-effective amendment process. If a change relates to facts or information that would influence the decision-making process of a reasonable franchisee then you should consider such change as material and as one that triggers an FDD update. Changes in information related to your Item 19 Financial Performance Representations must be made immediately.
Need help renewing your FDD this year? Contact us to learn about how we can help.
Learn more about State Franchise Laws and Registration Requirements.
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