Franchisors: The Importance of Verifying a Franchise Broker’s Registration in Washington State
In the State of Washington franchisors must ensure that their brokers are registered with the Washington State Department of Financial Institutions prior to permitting a broker to sell a franchise in Washington State or offer to sell a franchise from within Washington State. Not only is it a violation for a franchise broker to engage in Washington State sales activities prior to registering, an affirmative obligation is placed on franchisors and subfranchisors. That is, it is unlawful for any franchisor, subfranchisor, or franchisee to employ a franchise broker without the franchise broker registering. Avoid this unnecessary issue by ensuring that your internal compliance programs require written confirmation of a brokers registration status.
For a franchise broker to register in the State of Washington, the following steps must be satisfied:
Submit a completed Washington State broker registration application;
Disclose the brokers proposed method for doing business;
Disclose a list of the brokers qualifications and business history;
Disclose any injunction or administration order(s) or conviction(s) of the franchise broker; and
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and Charles N. Internicola, Esq. and that the information contained on this site does not and cannot serve as a replacement for the competent legal advice of a licensed attorney in your state. Further you acknowledge that any and all citations to cases and statutes must be independently verified by competent legal counsel to confirm the validity and accuracy of such information. The content of this site is subject to the Copyright of its author and owner, Charles N. Internicola, Esq.
