FDD Updating - Initial Thoughts

Franchise registration renewal season is almost on us as most franchisors have a December 31 fiscal year end. In preparation for gathering the information that you will need to update your FDD, please keep the following tips in mind:

1. Make sure that your auditors are aware of the filing deadline for your registrations, so that they can plan their audit to be completed and their opinion issued well before this date.
2. Most auditors are now requiring that they complete a review of your FDD before they will issue their auditor's consent. Plan your FDD update timeline to allow at least a week for the auditors to review the final FDD.
3. If your database system is real time, plan to run all the reports that you will need to complete your Item 20 tables on January 1 or 2, before you change the numbers. In this manner, it is easier to reconcile your numbers without having to also work backward from the date you begin preparing your tables.

That's all the tips for this week. I will keep adding tips each week as the FDD update season gets into full swing in January.

First Attempt

Ok, it appears that I now am going to attempt to join the world of bloggers. Since I pride myself in my computer skills, I have no excuse not to embrace this new (relatively new in the world of technology) tool. I intend to use this blog to post on topics related to franchise law and to franchise administration, including current events and practical advise. I will try to post at least once per week, so check back weekly. Let me know if there are particular topics that you would like for me to address.

Thanks,