When Does Your FDD Expire and Require Renewal? | Internicola Law Firm

When Does Your FDD Expire and Require Renewal?

Under the Federal Franchise Rule your FDD automatically 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:

StateRegistration or Filing StateState Expiration Dates
CaliforniaRegistrationAnnual registration required. Expires 110 days after your fiscal year end.
ConnecticutRegistration / ExemptionIf 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.
FloridaFilingAnnual filing required. Expires 1 year from filing effective date.
HawaiiRegistrationAnnual registration required. Expires 90 days after your fiscal year end.
IllinoisRegistrationAnnual registration required. Expires 120 days after your fiscal year end.
IndianaRegistrationAnnual registration required. Expires 1 year from registration effective date.
KentuckyFilingOne time filing only; no expiration. 
MaineFiling / ExemptionIf 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.
MarylandRegistrationAnnual registration required. Expires 1 year from registration effective date.
MichiganRegistrationAnnual notice filing required. Expires 1 year from notice filing date. 
MinnesotaRegistrationAnnual registration required. Expires 120 days after your fiscal year end.
NebraskaFilingOne time filing; no expiration. 
New YorkRegistrationAnnual registration required. Expires 120 days after your fiscal year end. 
North DakotaRegistrationAnnual registration required. Expires 120 days after your fiscal year end.
Rhode IslandRegistrationAnnual registration required. Expires 1 year from registration date; must submit renewal 30 days prior to expiration. 
South CarolinaFiling / ExemptionOne time filing if you have a registered trademark. 
South DakotaFilingAnnual filing required. Expires 1 year from filing effective date.
TexasFilingOne time filing; no expiration.
UtahFilingAnnual Filing is required. Expires 1 year from filing effective date.
VirginiaRegistrationAnnual registration required. Expires 1 year from registration effective date.
WashingtonRegistrationAnnual registration required. Expires 1 year from registration effective date. 
WisconsinRegistrationAnnual registration required. Expires 1 year from registration effective date.

How to Resolve Conflicts Between State Renewal Requirements and the 120 Day Federal Rule

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.

Quarterly and Immediate FDD Updates

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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