{"id":5534,"date":"2016-04-04T10:48:01","date_gmt":"2016-04-04T15:48:01","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/state-guide-franchise-disclosure-laws.html"},"modified":"2025-03-26T01:32:00","modified_gmt":"2025-03-26T06:32:00","slug":"state-guide-franchise-disclosure-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/state-guide-franchise-disclosure-laws.html","title":{"rendered":"State Guide: Franchise Disclosure Laws"},"content":{"rendered":"\n
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State Guides: Franchise Disclosure Laws and Business Opportunity Disclosure Laws<\/h1>\n\n
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\n By Amber Sheppard, Esq.<\/a> | Legally reviewed by Bridget Molitor, JD<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

State franchise disclosure laws are regulations that require franchisors to provide prospective franchisees with specific information before a franchise agreement is signed. These laws aim to protect small business owners by ensuring transparency about the franchise’s operations, financial health, and legal obligations. Key attributes include pre-sale disclosures, filing requirements, and the legal rights of franchisees, which vary from state to state.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

It can be difficult to understand local laws as a small business owner and entrepreneur<\/a>. When you’re looking to buy franchise rights or establish yourself as a franchisor, you have to understand complex federal and state laws.<\/p>\n

Some states have more franchise disclosure requirements for prospective franchisees to protect small business owners. If you live in a state with specific franchise disclosure laws<\/a>, this article can help your small business understand them and contact the agency responsible.<\/p>\n

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Are There Federal Franchise Disclosure Laws?<\/strong><\/h2>\n

The Federal Trade Commission (FTC) requires a franchisor to disclose certain documents to a prospective franchisee before signing a franchise agreement. This document is the Franchise Disclosure Document<\/a> (FDD). The entrepreneur must get the document at the earliest of the following:<\/p>\n