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Does Extending or Renewing a Franchise Agreement trigger a Franchisor's FDD Disclosure Obligation?

No. Under the Federal franchise Rule the extension or renewal of a franchise agreement does not constitute a franchise sale and therefore does not trigger a franchisors FDD disclosure obligation provided that there has been no interruption in the franchisee's business operations and provided that the renewal agreement does not differ materially from the original agreement.

Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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