Are You Ready for Update Season?
For franchisors, registration season can feel like a sprint—deadlines stack up quickly, state examiners move at their own pace, and even small delays can slow down your ability to sell franchises. The good news: with the right preparation, you can turn registration season from stressful to seamless. Here are 5 practical tips to stay organized, compliant, and ahead of schedule.
1. Start Early
Start by reviewing your Franchise Disclosure Document (FDD), audited financial statements, and any state-specific addenda. Pay close attention to sections that often require updates:
- Fees and initial investment ranges
- Financial performance representations (Item 19)
- Litigation disclosures
- Changes in the management team
- New suppliers, territories, or operational updates
Catching outdated or incomplete information early prevents back-and-forth revisions. An early review ultimately speeds up filing and results in cleaner, more accurate registrations.
2. Coordinate with Your CPA to Finalize Audited Financials
Late audited financials are the cause of the biggest delays during registration season. Franchisors should align their timelines with their CPA well in advance since state examiners will not issue approvals until audited financials are complete. A few ways to stay ahead:
- Pre-schedule your annual audit so you’re on your CPA’s calendar early.
- Gather required financial materialsbefore year-end to shorten the CPA’s turnaround.
- Clarify expectations– ask when drafts will be ready and lock in delivery deadlines.
Delays in audited financials can push back your FDD updates and, ultimately, your state filings. Coordinating early ensures your financials are ready when your attorney needs them.
3. Decide on the States You Want to Sell in
Registration states, filing states, and non-registration states each have distinct requirements and costs. Missing a deadline can lead to a temporary suspension of franchise sales. Identifying your target states early can help address potential concerns from each state.
If you are a Spadea Lignana client, you can track the fees and filing requirements of all of the states within the Client Access Portal.
4. Leverage Technology to Streamline the Process
Technology can turn a complex, document-heavy season into a more manageable one. Tools like Google Docs and Track Changes help keep everything organized and accessible.
Centralizing your documents ensures:
- Everyone is working from the same version of the FDD
- Your team can collaborate efficiently
- All changes are visible and trackable
5. Work Closely with Your Franchise Legal Team
Your legal team is one of your most important partners during registration season. Involving them early and consistently reduces unnecessary revisions, speeds up turnaround times, and ensures your FDD complies with both the FTC Rule and state requirements.
Your legal team can help you:
- Identify disclosures that need updating
- Anticipate state examiner comments before submission
- Prepare state addenda and required exhibits
- Address issues that may slow down approvals
The more proactively you communicate- sharing updates, strategic changes, and operational adjustments- the smoother and faster the registration season becomes.
Assemble Your Franchising Team
Registration season doesn’t have to be stressful. With early preparation, clear communication, and the right tools, franchisors can stay compliant, avoid delays, and streamline the entire process. Start early, stay organized, and work closely with your CPA and Legal Team.
Not sure where to begin? Contact Spadea Lignana today to begin working on your FDD update!
