Earlier this month the Securities Division of the Washington Department of Financial Institutions announced that it is considering amending Washington Regulation 460-80-300 to explicitly permit the delivery of a Franchise Disclosure Document (FDD) by a franchisor to a prospective franchisee via “electronic means” such as the Internet or email.   You may recall that it was around this time last year that the Securities Division announced the launch of its new on-line electronic franchise filing system for submitting franchise applications, renewals, and amendments.   Washington appears to be fully embracing the phase out of outdated paper delivery methods.

The FTC Rule has specifically allowed electronic delivery of an FDD since January 22, 2007.  The Securities Division recognizes that allowing electronic disclosures reduces franchisors costs and allows a more readily available FDD format.

Washington is now soliciting comments from interested person.  Franchisors operating in Washington states or franchisors intending to expand to Washington State are encouraged to contact the Securities Division and support the amendment to the regulation.  For further information regarding the submission of comments you are encouraged to contact Michelle Webster, Associate General Counsel, Department of Financial Institutions, Securities Division, P.O. Box 9033, Olympia, WA 98507-9033; telephone: 360-902-8736; or e-mail: michelle.webster@dfi.wa.gov.