What is or isn’t an “offer to sell a franchise” is important because, in many instances, your franchise disclosure obligations are triggered by not only the sale of a franchise, but an offer to sell a franchise. You cannot offer to sell a franchise to the residents of a particular state unless you have first complied with the Federal Franchise Rule and applicable state franchise laws. Before offering to sell a franchise in a particular franchise registration state, you must first ensure that your FDD was previously registered in that state.
An offer to sell occurs when there is a general discussion with a prospective franchisee about your franchise opportunity – it does not need to be a “formal” discussion. Also, generalized advertisements targeted to a particular state will constitute an offer to sell a franchise.
In this guide you’ll learn the basics of franchising, how to franchise your business, and how to win at franchising. We’ll also take a deeper dive into legal requirements for franchising and why they matter, steps to take before and after you launch your franchise, and even some tips on... read more
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Under federal law, prior offering or selling a franchise in any state, franchisors are required to disclose a franchise disclosure document (FDD) to their prospective franchisees. In addition to federal law certain states, including the franchise registration states, require that franchisors register their FDD with the state. The legal documentation... read more
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Key strategies to accelerate franchise growth for startup and emerging franchisors In this webinar, franchise attorney Charles Internicola and Nick Powills, founder of No Limit Agency and 1851 Franchise, discuss key strategies to accelerate franchise growth through PR and digital media. Some topics include: Steps franchisors should take when it... read more
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