How to Find Franchise Disclosure Documents (FDDS) Online for Free

There are four states that publish FDDs online. California https://docqnet.dbo.ca.gov/search/ California’s search engine is slow to update, but every document associated with a franchise registration (FDDs, blacklines, applications, permits) is available on the site, once they get around to updating it. Sometimes you have to know the exact name of the franchisor to be able to find the filing.…

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Selling Franchises in Registration States

I’ve just issued my FDD and want to start selling franchises with it. What are the next steps? This depends on where you’d like to sell franchises. Registration states require you to file your FDD and pay a fee, and most of these states have a formal comment letter process. Before you can start selling in the registration states, you’ll need to receive an acknowledgement or permit from the……

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When does my FDD expire?

Your FDD will expire on a national level 120 days after your fiscal year end. So, if your fiscal year end is December 31, your FDD will expire on April 30. When your FDD expires in a certain state will depend on whether that state’s registration is tied to your fiscal year end or if it is tied the effective date of registration. For example, several states’ registrations also expire 120 days…

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Required Financials for Your FDD

1. What financials are required for a franchisor operating in the United States? The Federal Trade Commission requires audited financials for the franchisor for the last three fiscal years before the Franchise Disclosure Document issuance date. This means you need a balance sheet for the last two fiscal year-ends and a statement of operations, stockholders’ equity, and cash flows for the last…

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Franchise Financial Assurance Options

To defer, or not to defer, that is the question. A blog on state registration financial assurance options. As most franchisors know, there are 14 states that require a registration of the Franchise Disclosure Document (“FDD”). Of these 14, nine states will review the franchisor’s financial statements and impose financial assurance requirements if the franchisor’s financial health is not up to…

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Talent Investment Protection No Poaching No Switching Provisions Under Political Attack

Each franchise system is unique. Training managers and other employees to do things the “system-way” takes time, money and other resources. The more that a franchisee invests in a worker, the more valuable that worker becomes for the franchisee. Unfortunately, that same value makes that worker a potential target for poaching by other system-franchisees; franchisees who want the benefit of…

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