As a franchisor, one of your key responsibilities is to deliver your franchise disclosure document (FDD) to prospective franchisees. And in the age of modern technology, you may be wondering how to deliver this document electronically, if at all possible. Continue reading to learn whether you can deliver an electronic FDD can how one of the experienced franchise law attorneys at FortmanSpann, LLC can stand by your side throughout.

Is it possible to deliver an electronic FDD?

The short answer is, yes, it is possible to deliver an electronic FDD. You may deliver it via email or simply have your prospective franchisees access it via the Internet. Importantly, there are federal and state laws that govern how to properly deliver this document electronically. They are as follows:

  • An FDD in electronic format must have the ability to be downloaded, printed, and/or saved by prospective franchisees.
  • An FDD in electronic format must not have external links that redirect prospective franchisees away to another site or document.
  • An FDD in electronic format must not have any audio or visual features.
  • An FDD in electronic format must not have any pop-up advertisements.
  • An FDD in electronic format must not have any form of advertising message.

How can I deliver a physical franchise disclosure document?

There is no harm in sticking to the traditional path of hand-delivering hard copies of an FDD to prospective franchisees. But if you choose this method, you must keep receipts of its delivery. So, it may be best if you keep the following tips in mind:

  • You must obtain a receipt that proves that you properly delivered your FDD, which may include included in Item 23.
  • You must obtain a receipt that includes a franchisee’s signature.
  • You must obtain a receipt that includes the date a franchisee received the FDD.
  • You must obtain a receipt that includes the date a franchisee received any additions to the FDD.
  • You must obtain a receipt that includes the date a franchisee received their first agreement.
  • You must obtain a receipt that includes the date a franchisee receives any additions to their agreement.
  • You must obtain a receipt that includes the date a franchisee made their first payment.
  • You must obtain a receipt that includes the name of a franchisee that made their first payment.

And regardless of whether you are delivering this document electronically or physically, there is a deadline of 14 days. Meaning, your franchisee must have access to this document for 14 days before you can receive any payments or enter into any type of agreement with them.

As you may likely conclude yourself, you may have an important document on your hands that requires immediate delivery. So you should not hesitate in contacting one of the skilled franchise law attorneys at FortmanSpann, LLC.