Franchise Questions
When does my FDD expire?
Your FDD will expire at the earlier of (1) when the new FDD is issued, or (2) when you reach a state or federal expiration date.
New FDD Issuance
Once you issue your new FDD, your old FDD expires.
For example, if you are in California and you issue a new FDD on April 20, your old FDD expires everywhere. Once you issue a new FDD anywhere, you are no longer allowed to use the old FDD anywhere.
State or Federal Expiration Date
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. Many states require that your FDD arrive in their office before the expiration date so do not plan on mailing the FDD a day or two early.
Several states’ registrations also expire 120 days after your fiscal year end: Illinois, Minnesota and New York. Hawaii and California have shorter timelines. Hawaii’s registration expires 90 days after the fiscal year end and California expires 110 days after the fiscal year end. Most franchisors do not prioritize the Hawaii deadline because the filing fee for a renewal and an initial filing (or late filing) is the same. Because of this, the California deadline generally controls the FDD update timeline.
Other states will expire 12 months after your state registration date. It is important to realize that while your registration in a state may still be effective, your FDD may not. For example, you are a franchisor with a December 31 fiscal year end. Your FDD expires on April 30. You might be registered in Maryland with an effective date of June 30, meaning your Maryland registration is still valid until the following June 30. However, if your FDD is expired, you cannot use it to offer or sell franchises in Maryland, even though you have a valid registration. This is one of the reasons it is important to update your FDD well before expiration date.
Here is a chart showing the registration or filing state’s expiration timelines:
REGISTRATION OR FILING STATE | REGISTRATION EXPIRATION DATE |
---|---|
CALIFORNIA | 110 days after your fiscal year end |
CONNECTICUT | Once exempt, does not expire |
FLORIDA | One year after the effective date |
HAWAII | 90 days after your fiscal year end |
ILLINOIS | 120 days after your fiscal year end |
INDIANA | One year after the effective date |
KENTUCKY | Once exempt, does not expire |
MARYLAND | One year after the effective date |
MICHIGAN | One year after the effective date |
MINNESOTA | 120 days after your fiscal year end |
NEBRASKA | Once exempt, does not expire |
NEW YORK | 120 days after your fiscal year end |
NORTH DAKOTA | One year after the effective date, but an amendment or early renewal is due 120 days after your fiscal year end |
RHODE ISLAND | One year after the effective date |
SOUTH DAKOTA | One year after the effective date |
TEXAS | Once exempt, does not expire |
UTAH | One year after the effective date |
VIRGINIA | One year after the effective date |
WASHINGTON | One year after the effective date |
WISCONSIN | One year after the effective date |
Here is a chart showing the registration or filing state’s expiration timelines:
REGISTRATION OR FILING STATE | REGISTRATION EXPIRATION DATE |
CALIFORNIA | 110 days after your fiscal year end |
CONNECTICUT | Once exempt, does not expire |
FLORIDA | One year after the effective date |
HAWAII | 90 days after your fiscal year end |
ILLINOIS | 120 days after your fiscal year end |
INDIANA | One year after the effective date |
KENTUCKY | Once exempt, does not expire |
MARYLAND | One year after the effective date |
MICHIGAN | One year after the effective date |
MINNESOTA | 120 days after your fiscal year end |
NEBRASKA | Once exempt, does not expire |
NEW YORK | 120 days after your fiscal year end |
NORTH DAKOTA | One year after the effective date, but an amendment or early renewal is due 120 days after your fiscal year end |
RHODE ISLAND | One year after the effective date |
SOUTH DAKOTA | One year after the effective date |
TEXAS | Once exempt, does not expire |
UTAH | One year after the effective date |
VIRGINIA | One year after the effective date |
WASHINGTON | One year after the effective date |
WISCONSIN | One year after the effective date |