Good-bye 2020! Hello, FDD Renewal Season!
The approaching Franchise Disclosure Document (FDD) renewal season can be a stressful period, because of the significance of ensuring your FDD is updated in accordance with the Federal Trade Commission’s Franchise Rule. Failing to make these updates may prevent a franchisor from offering to sell additional franchises.
To reduce stress and delays, it may be beneficial to designate someone on your team to be responsible for gathering all the necessary information to complete the FDD renewal process and reminding the persons possessing this information of the renewal deadline. This “FDD Point Person” should not be the owner or president of the franchise, but rather someone among your team who is most organized and has the time to focus on this task. The FDD Point Person should know who he or she must contact to gather the required FDD renewal information, and must not be hesitant in reminding the persons with information of the deadline as many times as it may take. Because the process of contacting the various individuals may be time-consuming, the role of the FDD Point Person is to handle this task in the most efficient way possible by giving all parties sufficient time to provide the requested information and setting internal deadlines to help move the project forward in a timely manner.
It may be worthwhile to consult with your team to determine who should be designated as your FDD Point Person to make the upcoming renewal period as organized and efficient as possible for all parties involved, and to develop a process that ensures all deadlines are timely met.
The contents of this article do not constitute legal advice nor does it create an attorney-client relationship with Canada Lewis & Associates PLLC. You should discuss your situation with an attorney whom you have engaged to perform legal services for you. If you wish to retain the services of Canada Lewis & Associates, please contact our office for more information.