With franchise registration renewals just around the corner for many franchisors, the Larkin Hoffman Franchise & Distribution Practice Group is gearing up to prepare updated franchise disclosure documents (“FDDs”) for franchisors nationwide. As you start preparing for your franchise renewals, here are our top ten franchise renewal tips for 2014:

1. Start Now: It may seem obvious, but start working on your FDD updates now while there is still ample time and opportunity. If you wait until spring, you may have to drop everything to get your updates done on time. Plus, starting early allows you to plan around company or industry conventions, special events, and any other business plans you or your team may have.
2. New Franchisee Programs: You should consider any new programs your company may offer franchisees starting in the next year, such as incentive programs and reimaging and remodeling programs for outlets, so they can be described in franchise disclosure documents and incorporated in franchise agreements or through addenda to franchise agreements.
3. Gather Ideas From the Year:  Gather up your ideas from experiences of the past year. Your legal staff may have run into issues with the franchise agreement, or perhaps your salespeople identified provisions they would like to change.  Also ask your attorney about any changes in the law.
4. Crunch the Numbers: Review the financial condition of the company and, if applicable, any parents that are guaranteeing its performance. Ask your attorney how your financial situation will affect the availability of exemptions based on net worth, or any financial assurance conditions that might be imposed by a state, like escrows or fee deferrals. Finally, start looking at how last year’s performance by your units will affect your Item 19 disclosure.
5. Run the Reports: Much of the year-end information required in the FDD, particularly Item 20 and the franchisee lists, is easier to capture now than months after the fact. By preparing that data now, you can resolve any issues or discrepancies while 2013 is still fresh in mind.
6. Be First in Line: State examiners receive hundreds of renewal applications in late March.  Why not file sooner and get your FDD on the top of the stack? By renewing even a few days early, your review time may be reduced by several weeks, meaning you can get back to selling franchises faster.
7. Call Your Auditor: If you have not already done so, get in touch with your accountant to ensure your audit is prepared on time (or early – see #6 above).
8. Update Marketing Materials: Renewal season is a great time to update outdated marketing materials (or prepare new ads) and file them with the states. It is also a good time to give your website a thorough check-up. Do not let a state examiner review your online content before you do.
9. Set Your Sales:Coordinate your target filing date with your sales staff so that transactions can be closed in advance of any “dark” period you might experience while waiting for a state to approve your FDD.
10. E-Filing: A few states (Rhode Island, Washington, Wisconsin, and soon Minnesota) offer the option to e-file certain types of franchise filings. Though each state’s e-file application varies and there are certain limitations, over time e-filing should reduce costs, reduce state review time, and “green up” the renewal process.