When you deliver a Franchise Disclosure Document (FDD) to a prospective franchisee‚ you can either have a hard copy delivered by hand‚ or you can deliver it in electronic format. To deliver an FDD in electronic format‚ you can send it by email‚ or have your prospective franchisee access it via the Internet.
If you provide the FDD in electronic format‚ then the prospect must be able to download‚ store‚ print‚ or otherwise maintain the FDD. However‚ there are several rules that prohibit what you may include in the electronic format.
An FDD in electronic format may not include:
- External links that will redirect the prospect away from the original document
- Any audio or visual features
- Any other form of advertising messages
Once you deliver the FDD‚ you should make sure that you receive a receipt of delivery. This will help you in case of any disputes about the disclosure process. Many companies choose to document the franchisor disclosure process. This may be done by videotaping an interview with a prospective franchisee‚ while others have a written certificate signed by the prospect.
For more information and legal advice‚ you can get the professional help of a New York franchise attorney.
If you are selling franchises in New York‚ then it is important that you document the disclosure process. To learn more about the franchise disclosure process please visit our article library.
How an Attorney Can Help
A franchise attorney can help you throughout the disclosure process. By hiring an experienced attorney‚ you can avoid the potential missteps of delivering your Franchise Disclosure Document (FDD).
If you are an entrepreneur who is interested in franchising your business there is a lot you need to know‚ including the significance of evaluating your trademark and how to approach the preparation of your FDD.
Contact us today at 1-800-976-4904 for more information about our franchise law services and how we assist entrepreneurs franchise their business nationwide.