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The general federal period is at least 14 calendar days
For a covered nonexempt franchise to be located in the United States or its territories, the franchisor generally must furnish the current FDD at least 14 calendar days before the prospective franchisee signs a binding agreement with, or pays, the franchisor or an affiliate in connection with the proposed sale.
An affiliate is a related company. Routing a charge to it does not by itself remove the payment question. Calling a payment a reservation or making it refundable does not automatically put it outside the rule either.
A territory deposit changes what must be checked first
A fictional Dutch brand plans final signing near month-end but asks for an earlier deposit to hold the territory. Counting only from final signature misses that earlier event. If the deposit is a relevant payment, the waiting period must be satisfied before it; postponing signature does not cure a premature payment.
The same principle requires examining preliminary agreements and what they actually bind the parties to. This example does not determine the treatment of a particular reservation.
Use the documents actually furnished
Use a permitted delivery method and the rule’s actual counting requirements, including the special treatment of mailing. Keep the current FDD, proposed agreements and exhibits furnished to this recipient and the delivery evidence. A learning-module completion does not establish formal disclosure.
State requirements and later document changes can impose separate questions. A signed receipt is evidence of delivery, not approval of the offering or a waiver of the buyer’s rights.
Scope
- This explains general federal timing; exemptions, delivery/counting facts and independent state or revised-agreement requirements still need application to the transaction.
Next step
Check the earliest relevant agreement or payment before asking the prospect to sign or pay.
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-436.6
Respond fully to each disclosure Item.
Current eCFR displayed through 2026-11-09; eCFR is authoritative but not the official legal edition.
Detailed rule records (1)
For a nonexempt franchise located in the United States or its territories, furnish the current FDD at least 14 calendar days before the prospect signs a binding agreement with, or makes payment to, the franchisor or affiliate in connection with the proposed sale.
16 CFR §436.2: Federal disclosure timingKeep this reading in your learning library.
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