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Must a FDD be Amended Prior to Negotiating and Changing a Franchise Agreement?

No - if the change benefits the franchisee and was negotiated by the franchisee. If, as a franchisor, (a) in the course of a franchise agreement negotiation the franchisee requests a franchise agreement modification, and (b) the modification is for the benefit of the franchisee, then you do not need to amend or modify your FDD with regard to that particular franchise sale transaction.

If you are an existing franchisor, learn more about Charles N. Internicola's cost effective and risk reducing general counsel program for franchisors. This program is designed to provide a continuous compliance program, reduce risk and balance out legal fees and compliance costs.

Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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