It is franchise renewal season, the time when franchisors having a Dec. 31 fiscal year (virtually all of them) must renew their franchise registrations or exemptions by amending their Franchise Disclosure Documents (FDDs) to incorporate their preceding fiscal years' audited financial statements as well as updates to other critical disclosures (new or departed officers and directors/litigation updates/revised financial performance representations/number of franchisees who entered or exited the franchise network).

Normally, the central concern of franchise counsel during this annual renewal exercise is the client's FDD. Of course, the FDD remains a vital center of attention. But this year attention must be paid to the client's franchise agreement itself. Because on Sept. 18, 2022, the North American Securities Administrators Association (NASAA) promulgated its "NASAA Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgments."