As a franchisor, you must update your Franchise Disclosure Document (FDD) annually. Without going legalese on the subject, this update is both a federal and state requirement so every franchisee receives the most current registered and approved information about your company at the time of a sale.

According to federal law, this is to be done within 120 days of your company’s fiscal year end. Some states set registration periods to expire earlier than 120 days after a company’s fiscal year end, so be sure to confirm what is applicable to you.

For companies with a fiscal year end of December 31, the update is due April 20 of each year. This infographic by Gettins’ Law is a friendly reminder that breaks the process down into monthly, manageable steps to facilitate on-time compliance. If your fiscal year end is other than December 31, aligning the steps would be the same, just assigned to different months.

If you haven’t started the update process yet, you might want to use this as a guide to get on track for meeting the compliance deadline.

This annual FDD update is a good time to remind your franchise sales team of compliance rules and company sales policies. This could include any refresher training for your franchise brokers or others who interact with prospects during the franchise sales process, including updating any information on your website or other social media channels that may be impacted.

As with filing taxes each year, it feels so good when it’s done!