David J. Kaufmann
The thrust of every federal and state franchise registration/disclosure law is that a franchisor’s disclosure document must not remain static but, instead, must periodically be updated to reflect material changes to the information set forth therein. Such updates are referred to as disclosure document “amendments” and must be prepared at least once a year—following the close of the franchisor’s most recent fiscal year—and more often if, intrayear, material changes transpire to the information set forth in the disclosure document. As well, franchisors may from time to time find it useful to amend their disclosure document even if not legally required to do so.
We shall address in this column the various required and permitted amendments to a franchisor’s disclosure document and the timing requirements pertaining to same.
