by Julie Lusthaus 

As the coronavirus spreads across the U.S., the federal and many state governments are providing relief to businesses by extending the deadlines on various filings. Among the areas receiving attention are state registration and filing deadlines for franchisors. 

Franchise Disclosure Documents (FDD) must be prepared and updated annually within 120 days after the franchisor’s fiscal year–end under the FTC Franchise Rule. Franchisors that ended their fiscal year in December must update their FDDs before the end of April. In addition, some states have their own registration and filing obligations before a franchise can be sold within the state and then renewed annually. State requirements vary. Some mirror the FTC 120-day rule; others require renewal within a year of the franchisor’s initial registration. Depending on the state(s) in which the franchisor offers and/or sells franchises, the annual renewal filings must be made within 90 to 120 days following the end of the franchisor’s fiscal year or prior to the anniversary of the effective date of the franchise registration.  

While many franchisors are likely concerned about complying with due dates because of upheaval in their business, states are starting to provide assurances of extra time. For example, in New York, deadlines for registration renewals, amendments, and other filings have been extended. In addition, a franchisor that is filing a franchise registration renewal or an amendment may offer, but not sell franchises, while the IPB reviews the application. New York is also working on implementing new electronic filing procedures to improve operations.   

Similarly, Maryland announced that it is continuing to accept and process franchise registration applications as they are received although the staff is working remotely. In addition, the state is granting an automatic extension of the effective dates of franchise registrations and exemptions of effective franchise offerings in Maryland that would otherwise have expired during its state of emergency. A franchisor whose Maryland registration is extended during this emergency period may continue to offer, but not sell a franchise under certain conditions, if the franchisor provides to prospective Maryland offerees an updated FDD that complies with the FTC Franchise Rule. 

Virginia has also announced an extension of the deadline for registration and exemption renewals. California has not extended its due dates but has waived the additional $225.00 filing fee through June 30, 2020 for franchise renewals that are filed after the franchise registration has lapsed. Ideally, other states will provide similar relief to franchisors, but it should not be assumed that they will. Best practice is to check with each state in which you are required to register, renew, or file as soon as possible since many deadlines are coming up quickly. 

If you are unsure of what you need to do or you will not be able to meet a deadline, contact Lusthaus Law for assistance. 

by Elizabeth Denham

Paul Picket is the co-founder and co-chair of the newly formed Franchising Pride Council of the International Franchise Association (IFA). While his experience coming out was relatively simple compared to many, when he decided to come out at work, he was anxious — but his fears were unfounded. 

“My boss, Jim Carpenter, founder and CEO of Wild Birds Unlimited, told me that no one at work cared. And he told me never to lie about it,” Pickett said. “I was worried about someone not wanting to come into the franchise system because I was gay. He told me that you couldn’t build relationships without getting somewhat personal, and if it came up, we always tell the truth at WBU.” 

Carpenter further added that if a potential franchisee would not join the franchise because of Pickett’s sexual orientation, it was not someone they wanted to work with. 

“Jim told me that our company embraces diversity,” Pickett added. “It is part of our value statement, and he said that he wouldn’t want someone who wouldn’t also embrace every person, franchisee or customer. Birds don’t care, so we don’t care.” 

Pickett is Chief Development Officer at Wild Birds Unlimited. He was inspired, in part, by Stan Friedman’s work to increase diversity in the IFA by forming the Diversity Institute. When Friedman won the Ronald E. Harrison Award for diversity in 2010, his message hit home with Pickett. 

“Stan got up on the stage and said that we do ourselves a disservice when we don’t embrace diversity and recognize that it doesn’t matter — your sex, color, religion, who you choose to love. If we don’t embrace the richness all people have to offer, we have lost a huge amount of opportunity,” Pickett said. “That speech made me feel like I could take a step forward and become more involved.” 

Pickett believes The Pride Council is an opportunity for the IFA to make a statement that the franchising industry is an open organization that it is approachable to all walks of life. 

“Our goal is to make sure all people, particularly in the LGBTQ community, are treated appropriately and equitably,” Pickett said. “In this time, it would be archaic not to reach out to all members of the community.” 

The Pride Council launched at the September 2019 IFA meeting with a reception to introduce itself to franchising. There were 75-100 attendees, and Pickett was encouraged by the response. 

“The power of that support, to know we had so many people interested in progressing inclusion and equity, it was amazing. We were so pleased.” Picket said. 

In December in Washington, D.C., members of the council met with LGBTQ business leaders, the Gay and Lesbian Chamber of Commerce and a congressional caucus to discuss next steps and set forth the role of the council. Plans for the next year include attending the Franchise Action Network Annual meeting, creating educational content and increasing opportunities for engagement. 

Long-term goals include advocating for other brands to actively embrace the LBGTQ community along with all other communities that have been historically marginalized. 

“I have a personal goal to identify the economic impact of the LGBTQ community on the franchising industry,” Pickett said. “I think that in a perfect world, sexual orientation shouldn’t matter, but now, as we achieve a lot of firsts as a community, we must stop for a moment to celebrate. It has been so heartwarming to me that though this experience of forming the Pride Council, so many people -gay and straight – men and women – have offered to help. We are on the right track.” 

Paul Pickett is the IFA’s 2020 winner of the Crystal Compass Award. In addition to his role at Wild Birds Unlimited, Pickett has served on the Advisory Board for the Franchise Update Leadership and Development Conference, which he also chaired in 2018. He sits on both the IFA’s Franchise Relations Committee and Franchisor Forum and is the co-chair of the newly formed IFA Pride Council. You can reach him at pickettp@wbu.com.  

by Elizabeth Denham

Aubree Coderre has been one of the lucky ones who has had the gift of mentorship throughout her career. From college to today, she has had strong women guide her in everything from learning about social media to franchising and life in general. And now she is paying it forward. 

“There is a lot of male leadership out there, which is great,” Coderre said. “But when you have women who have grown in similar ways, they have a lot of experience and wisdom to relate to.” 

Coderre is a national sales manager at C Squared Social, and as her career has progressed, she has relied on the generosity of other women to help her forge her path. 

“Rebecca Monet has been an amazing, long-term mentor to me,” Coderre said. “I met her in a public speaking class when I was in college, and she brought me into Zorakle and was my first boss.” 

Monet is the founder and president of Zorakle, a company which offers psychometric assessments to determine franchisee-franchisor compatibility.  

“Sally Facinelli also took me under her social wing and taught me a ton,” Corderre added. “And Mary Ann O’Connell of FranWise taught me a lot about the environment of franchising. I believe we gain insight over time through coaching and mentorship. Having a strong network of people is invaluable.” 

Coderre said she has accidentally become a mentor a few times. She hosted a Franchise Business Networking group through the International Franchising Association. She has done some professional coaching, and coaches newer members of the C Squared team. 

“Mentorship comes in many forms.” She said. “There are always little ways to mentor and often, long-term relationships develop. Helping people is so important – there are so many barriers out there. If you can help someone navigate through those barriers to grow and learn, it’s a great thing.” 

Corderre has volunteered with homeless and at-risk youth through the Stand Up for Kids program, which helps kids set goals and create opportunities.  

“I think there is so much more out there,” Coderre noted. “I want to be a part of helping someone grow and learn that they can do more than they think they can.”