The Washington State Department of Financial Institutions recently published proposed changes to the agency regulations governing delivery of an FDD subject to Washington’s Franchise Investment Protection Act. The new provision would expressly permit franchisors to deliver an FDD over the internet or by other electronic means. The current rule is silent as to the method of delivery of an FDD.
The rules would require a franchisor to deliver the FDD as a single document that only consists of information required by NASAA’s 2008 Franchise Registration and Disclosure Guidelines. An FDD cannot contain links to external websites or content, and the recipient must be able to download, save, and print the FDD.
Franchisors wanting to take advantage of electronic delivery will be required to keep records that prove delivery was made in compliance with the rule and make those records available on demand by the administrator of the Securities Division.
A full copy of the proposed rule can be found here, and would amend WAC 460-80-300.
A public hearing on the proposed rules is scheduled for March 25, 2015 and the Securities Division is accepting comments through that same date.