“Pipeline” franchise sales are sales of franchises to franchisees who received a now (or soon to be) superseded Franchise Disclosure Document (FDD) but who have not yet signed a binding agreement with, or paid any money to, the franchisor.
'Pipeline' Franchise Sales and Redisclosure
Pipeline" franchise sales are sales of franchises to franchisees who received a now (or soon to be) superseded Franchise Disclosure Document (FDD) but who have not yet signed a binding agreement with, or paid any money to, the franchisor. This article addresses these sales and what steps a franchisor must take with respect to franchisees in the pipeline once the franchisor has issued a new successor FDD (such as happens every year at franchise registration renewal time).
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