FRANCHISE LAW

Multistate and Roll-Up FDDs, Explained

A multistate or roll-up FDD is a single Franchise Disclosure Document built to be used in every state at once, with state-specific addenda bolted on instead of maintaining a separate FDD for each jurisdiction. It exists to solve one problem: as a franchisor expands, different state examiners demand different edits, and keeping a unique document per state quickly becomes unmanageable. The roll-up approach consolidates everything into one master FDD plus a set of addenda. This article explains what these documents are, how the addenda work, and when a franchisor should adopt one.

Why the Multistate Problem Exists

The FDD is a federal creature — the FTC Franchise Rule sets one disclosure format of 23 standard