Confused about the last point. Can someone explain? So after 1year your franchise expires and you need to start a new one or something? Doesn't make any sense
Every year, franchisors must update their FDD to include the prior year's information (any changes made, new locations opened, any locations closed, new financials), plus any new laws that need to be included. In certain states, franchisors also have to refile or re-register their FDD as well.
@@entrepreneurskickass But the filing doesn't expire right? As in its not a completely new Franchise, its a continuation of the previous one. Also are you restricted to the one year? Can a franchise for example implement a new set of rules like lets say 4 months or 6 months after they opened?
@@JAMMzMHW The filing's expire after one year, meaning if you want to sell again in that state, you would have to re-file. You are allowed to make changes throughout the year - if you have any material changes, you should submit a post-effective amendment. We have some more info here: www.franchiselawsolutions.com/learn/franchise-your-business/what-kind-of-updates-do-i-need-to-make-to-an-fdd If you want to just update general "rules", you can update them in your Operations Manual, not the FDD.
Super! It is very useful! Thank you! Can I use your video for my students for non-commercial purposes?
I appreciate your knowledge, very helpful!
Glad you found it helpful!
this was very informative thank you so much!
Thank you so much!
Confused about the last point. Can someone explain?
So after 1year your franchise expires and you need to start a new one or something? Doesn't make any sense
Every year, franchisors must update their FDD to include the prior year's information (any changes made, new locations opened, any locations closed, new financials), plus any new laws that need to be included. In certain states, franchisors also have to refile or re-register their FDD as well.
@@entrepreneurskickass But the filing doesn't expire right? As in its not a completely new Franchise, its a continuation of the previous one.
Also are you restricted to the one year? Can a franchise for example implement a new set of rules like lets say 4 months or 6 months after they opened?
@@JAMMzMHW The filing's expire after one year, meaning if you want to sell again in that state, you would have to re-file. You are allowed to make changes throughout the year - if you have any material changes, you should submit a post-effective amendment. We have some more info here: www.franchiselawsolutions.com/learn/franchise-your-business/what-kind-of-updates-do-i-need-to-make-to-an-fdd
If you want to just update general "rules", you can update them in your Operations Manual, not the FDD.
*More about the FDD:*
www.franchiselawsolutions.com/learn/franchise-your-business/fdd
great video
Glad you enjoyed it