FDD renewal is the mandatory annual update of the Franchise Disclosure Document. Franchisors must revise their FDD each year to reflect new financial statements, updated system information, changes in fees, litigation updates, territory structures, and any other material revisions required under the FTC Franchise Rule.
Once updated, the renewed FDD must be issued to all prospective franchisees and, where required, filed or registered with franchise registration states. A new issuance date is provided to the new document.
Annual FDD renewal ensures:
continued compliance with federal franchise law
updated and accurate disclosures for prospective franchisees
timely submission of new audited financial statements
proper reporting of systemwide openings, closures and transfers
alignment with franchise registration state deadlines
clear documentation of any material changes
Failure to timely renew the FDD can halt franchise sales and can expose a franchisor to regulatory penalties and legal risks.
The renewal process typically includes:
updating financial statements with new audited financials
revising Items 1 through 23 as required
updating Item 20 outlet tables
reviewing marketing materials for compliance
updating franchise agreements and addenda
preparing application materials
submitting filings to registration states before deadlines
Most franchisors renew their FDD each year within 90 to 120 days after the fiscal year end, though state-specific rules vary.
Registration states require:
filing the renewed FDD
payment of state renewal fees
state review and comment letters
issuance of a new “effective” date before sales can resume
Offers and sales cannot occur during any lapse in registration or "black-out" period.
Franchise Registration State
Material Change
Franchise Examiner
Franchise Exemption
Notice Filing State
Non Registration State
Stop Order
Franchise Registration Management
Franchise Territory Mapping
Integrated Document Signing
CRM Tools
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Last updated: November 25, 2025
