2010 Franchise Disclosure Compliance Calendar

We are pleased to provide you with the MSA 2010 Franchise Disclosure Compliance Calendar. We hope you will find this to be a convenient reference to calculate the disclosure timing requirements mandated by FTC regulations and various state laws.

Fixed Calendar Day Disclosure Rules

FTC 14-Day Rule
FTC regulations require that you distribute a complete franchise disclosure document with exhibits to all prospective franchisees on a date that is on a date that is not less than 14 days prior to the signing of any agreement or the acceptance of any money. Note that it is a requirement that you deliver all of the relevant agreements and documents with the UFOC.

FTC 7-Day Rule
In addition to the 14-Day Rule, the FTC also requires that no less than 7 days prior to the signing of any agreement or the acceptance of any money that you deliver to a prospective franchisee a completed copy of all agreements and related documents to be signed by the franchisee. You must deliver a completed, “ready to be signed” set of documents to a prospective franchisee not less than 7 days before you can accept any check or signed agreement. Please speak to your legal advisor about allowable contract changes that can be made during the 7-day period.

Calculation Method

In calculating the appropriate time period, we do not count either the day the franchise disclosure document is delivered or the day on which the agreement is signed or money is received. For example, when following the 14-day rule, there must be an intervening period that includes 14 days in which no activity occurs. You will note in reviewing the calendar that we have taken this method of calculation into consideration.

The calendar is designed to let you know the first day that you can close a transaction if you complied with that applicable rule as of that date. We hope that you will find this calendar to be a useful tool throughout the year. You should always verify the calculation prior to use and discuss your disclosure policies with your legal advisor.

Click here to view the 2010 Disclosure Compliance Calendar (PDF)

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www.msaworldwide.com
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