If a new FAQ is issued that would necessitate revision of a franchisor’s Franchise Disclosure Document (“FDD”), when must the franchisor revise its FDD?
FAQs represent the views of FTC staff who are responsible for enforcement of the Franchise Rule, and have not been reviewed, approved or adopted by the Commission. Nevertheless, staff is aware that on occasion FAQs interpreting the Rule may require some franchisors to revise FDDs that they previously have placed in use in non-registration states, or that they already have filed in registration states. Since FAQs are intended to provide bright-line guidance on issues not directly addressed by the Rule, the Statement of Basis and Purpose, or the Compliance Guide, they may clarify the existence of obligations not previously understood as requirements of the Rule. Accordingly, in recognition of the costs of revising FDDs, FTC staff will not recommend enforcement action based on a new FAQ, as a matter of policy, until such time after the new FAQ is issued as a franchisor is otherwise required to revise its FDD by the Rule or state law. Thus, after the date a FAQ is issued, an FDD should be
