In light of the COVID-19 pandemic, California made recent changes to filing deadlines, fees and submission requirements for filing annual Franchise Disclosure Document (FDD) renewals. The California Department of Business Oversight announced the following:

• Through June 30, 2020, the department will waive the additional $225 filing fee for franchise renewals that are filed after the franchise registration has lapsed.
• The Department will accept documents filed on DocQNet that are signed electronically using e-signature software, such as DocuSign, in which case notarization of signatures will not be required.
• The department is strongly urging that all filings made under the Franchise Investment Law (Corporations Code Section 31000 et seq.) be submitted electronically through the department’s self-service portal, DocQNet. For paper filings eligible for automatic effectiveness, the Department requests that filers acknowledge in their transmittal letter a waiver of automatic effectiveness to avoid the issuance of a stop order preventing automatic effectiveness in California and to acknowledge that their application will be made effective on the date designated by department order.

If you are a franchise owner contact your legal counsel to assist with this year’s filings. Many dates and procedures have changed, and updates are occurring on an almost daily basis.

The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.