State Offices Administering Business Opportunity Disclosure Laws
Franchise State Registration Process
Twenty-six states have business opportunity or franchise registration laws. Most of these laws prohibit sales of business opportunities or franchises unless the seller gives potential purchasers a pre-sale disclosure document that has first been filed with a designated state agency.
State business opportunity laws typically cover every imaginable type of business opportunity that might be offered. If a business opportunity seller is not required to provide pre-sale disclosures by the Franchise Rule, these disclosures will almost always be required by the laws of the states listed below. The disclosures required by state business opportunity laws differ, and usually provide more abbreviated information than the FTC’s Franchise and Business Opportunity Rule requires. However, most of these laws provide important rights and remedies for business opportunity investors, including required security bonds to cover investor losses. If you are considering purchasing a work-at-home or other business opportunity, and reside in a state with a business opportunity law, we encourage you to find out more about the protection provided by your state statute before you invest. Alaska (filing required) Attorney General’s Office Commercial and Fair Business Section 1031 W. 4th Avenue, Suite 200 Anchorage, Alaska 99501 (907) 269-5200
Franchise Review Board is the premier source of the review is a franchise, FDDs, Franchise disclosure documents, corporate sales and business opportunities
Fifteen states have business investment regulations that require franchisors to provide pre-sale reports, known as offering circulars to potential buyers. Twelve of these state regulations treat the purchase of a business like the purchase of a security.
Franchise Review Board is the premier source of the review is a franchise, FDDs, Franchise disclosure documents, corporate sales and business opportunities
Fifteen states have business investment regulations that require franchisors to provide pre-sale reports, known as offering circulars to potential buyers. Twelve of these state regulations treat the purchase of a business like the purchase of a security.