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When the seven-calendar-day rule applies
If the franchisor unilaterally and materially changes the attached basic franchise agreement or related agreements, it must furnish each revised agreement at least seven calendar days before that agreement is signed.
Not every drafting edit is material. Changes arising from negotiations initiated by the prospective franchisee do not trigger this particular period. Calling a brand-proposed change negotiated does not establish that exception.
Two changes in the same transaction
After furnishing the FDD, a fictional brand adds a new field-support charge for all new operators. The prospect did not ask for it. Determine whether that is a unilateral material change requiring the revised delivery and waiting period.
The same prospect asks to move a territory boundary during negotiations. Preserve that different origin rather than classifying both revisions together. A final clean copy alone does not explain who initiated each change or its effect.
This does not replace the general timetable
The general FDD disclosure period and state amendment or further-disclosure requirements are separate. Fix the signing date using the actual revised documents and applicable rules, not a broad assumption that any negotiation either restarts everything or removes all waiting.
Scope
- No particular materiality or state-law outcome is decided here. The seven-day trigger concerns signing the revised agreement, not a replacement for every other timing rule.
Next step
Establish who initiated the change and what it changes before setting the signing date.
Sources & review notes
Federal Trade Commission
Passage, dates and research notes
primary · section-436.2
at least 14 calendar-days
Current eCFR displayed through 2026-11-09; eCFR is authoritative but not the official legal edition.
Federal Trade Commission
Passage, dates and research notes
primary · section-436.9
reasonable basis and written substantiation
Current eCFR displayed through 2026-11-09; eCFR is authoritative but not the official legal edition.
Federal Trade Commission
Passage, dates and research notes
primary · section-436.10
equal or greater protection
Current eCFR displayed through 2026-11-09; eCFR is authoritative but not the official legal edition.
Detailed rule records (1)
A franchisor that unilaterally and materially alters the attached basic franchise agreement or related agreements must furnish each revised agreement at least seven calendar days before signing. Changes arising from negotiations initiated by the prospect do not trigger this §436.2(b) period.
16 CFR §436.2: Federal disclosure timingKeep this reading in your learning library.
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