Updating Franchise Disclosure Documents: Amendments and Renewals


Summary

This practice note addresses the requirement that franchisors periodically update their disclosure documents to keep them current. The thrust of every federal and state franchise registration/disclosure law is that a franchisor's disclosure document must not remain static but, instead, must periodically be updated to reflect material changes to the information set forth therein. This practice note shall address the various required and permitted amendments to a franchisor's disclosure document, including amendments under the Federal Trade Commission (FTC) Franchise Rule and under state franchise disclosure laws, mandatory amendments that are triggered upon an occurrence of a material change to the facts contained in a disclosure statement, voluntary amendments to disclosure documents, the timing requirements pertaining to amendments to disclosure documents, and the effect a required amendment has on a franchisor's ability to offer and sell a franchise.