skip to content
Home What is a Franchise Disclosure Document (FDD)? What Constitutes an Offer to Sell a Franchise?

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.

Close Overlay

Let’s Talk

With services to make your growth strategy simple, cost effective, and with a team excited to help you, let’s talk about how we can help grow your business.

Fill out the following form and we’ll contact you as soon as possible. To reach our team directly, give us a call at (800) 976-4904.