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.
Every FDD expires each year, no later than 120 days after the franchisor’s fiscal year end. For most franchisors with a December 31 fiscal year end, this means the FDD must be renewed by April 30 each year to remain valid.
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. Franchises cannot be sold in any state with an expired FDD.
The renewal process typically includes:
communication with legal counsel
revising Items 1 through 23 as required
updating Item 20 outlet tables
reviewing marketing materials for compliance
updating franchise agreements and addenda
updating financial statements with new audited financials
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 to minimize blackout periods, though state-specific rules can place additional time constraints.
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.
Managing renewal and state registration deadlines can be complicated, especially for growing franchise systems. Zors includes built in compliance tracking tools created specifically for franchise operations. The map interface uses clear color coded status indicators to show where a franchisor is currently registered, where filings are pending, and where registration has not yet been completed. This gives franchise development teams and legal counsel immediate visibility into which states are open for sales.
Zors was designed by a franchise attorney, Derek Colvin (Waldrop & Colvin), from the ground up to support compliance and efficiency throughout the franchise sales process. The integrated CRM stores all your key information in one place, reducing administrative effort and helping prevent compliance gaps that could delay franchise sales.
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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2025 Guide to Franchise Registration States in the U.S.
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Last updated: December 10, 2025