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State Franchise Laws

When offering a franchise for sale in any particular territory, you must comply with state and federal laws. Federal laws are consistent throughout the nation, but the federal law allows states to impose greater requirements on franchisors, including registration and additional disclosures.

At Carter & Tani, Attorneys at Law, we are committed to helping national franchisors and subfranchisors comply with federal franchise laws and state franchise laws. Our Chicago area franchise lawyers have more than 25 years of experience handling legal matters related to franchising. Put our experience and legal skills to work for you. Contact us today to speak with an attorney regarding state franchise laws.

Helping National Franchisors and Regional Subfranchisors Comply With State Laws

To protect your business interests and prevent unnecessary litigation, it is important to understand the state and federal franchise laws. The Amended FTC Rule applies to the offer and sale of franchises in all 50 states, but some states also have their own franchise laws that apply to the offer and sale of franchises in their state. These laws give protection to franchisees that reside in the state or establish a franchise business in the state.

If you are a franchisor or subfranchisor/master franchisee, you need to be aware of the state law requirements. You may need to register the franchise and comply with state laws on how franchises are offered and sold.

You cannot offer or sell a franchise in a franchise registration state until you have registered or have met the conditions for an available exemption. Whether your franchise sales activities trigger the applicability of a state franchise law may depend on a number of factors, including:

  • Where the franchisor is located
  • Where the offer or sale of the franchise is directed and accepted
  • Where the franchise is to be located
  • Where the prospective franchisee resides

In submitting state franchise registration applications, you must follow the 2008 Franchise Registration and Disclosure Guidelines adopted by North American Securities Administrators Association (NASAA). You must comply with any additional state-specific disclosure requirements established by state regulation and practice and state-specific delivery requirements.

Filing Franchise State Registrations Nationwide

Our attorneys have extensive experience filing state franchise registration applications and obtaining state franchise registrations for our franchisor and subfranchisor clients in all of the franchise registration states. We can assist you in the registration process and help you maintain your state registrations.

For franchisees, you should be aware that if you reside in or establish your franchise in any of the registration states, you may have additional protections available to you under the state franchise law.

Contact Our Chicago Area Franchise Law Firm

To ensure you are complying with state and federal laws and regulations, contact our attorneys today. We have extensive experience helping national franchisors and regional subfranchisors navigate state laws and regulations from our law offices in Wheaton, Illinois.

General Information on State Compliance Guidelines

For specific information regarding your individual circumstance, it is best to speak with an experienced franchise law attorney. However, you can find general information through website information and free publications offered by several states listed on our Resources Page.