Franchising is regulated by the Federal Trade Commission (FTC) and a variety of individual states. If you are interested in expanding your franchise nationwide, it is imperative to make sure you have registered your franchise properly in the states that require it.
The registration process for franchisors can be an arduous and intimidating one for a franchisor regardless of how many years they have been in existence. Many states have a regulatory oversight agency that reviews every franchise disclosure document (FDD) of any business trying to offer a franchise for sale within its state. Several of these registration states have different requirements to register the franchise properly with a variety of required disclosures. Moreover, many of these states require an annual registration to ensure the franchise is still in compliance with their requirements.
Each one of these oversight agencies carefully reviews a FDD to make sure it is amenable with state regulations. It is typical for the state to comment on an FDD and require a franchisor to clarify certain provisions of their FDD. Furthermore, the franchisor is then asked to resubmit their documentation with their comments integrated. The entire process can be a grueling one and, if it is not handled correctly, can take months to finally gain approval.
We have helped dozens of franchisors with state registrations and look forward to learning more about your brand and whether or not our law firm would be a good match for your needs.
Please call us at 215-525-1165 today for more information on how we can help you develop a cost-effective and efficient system for getting registered and staying registered in the states you want to do business in.