Alabama Franchise Filling and FDD Registration: Franchising in Alabama
The State of Alabama is not a franchise registration state. This means that to offer or sell franchises in Alabama you do not need to register your Franchise Disclosure Document (“FDD”) with the state. Nevertheless, you must still comply with the Federal Franchise Rule which requires that you properly disclose a validly issued FDD prior to signing any franchise agreement with an Alabama franchisee or accepting any payments from an Alabama franchisee.
To learn more about franchising in Alabama and how we can help, give us a call at (800) 976-4904 or contact us.
The Franchise Relationships, the FDD and The Franchise Disclosure Process
Franchise relationships are created through agreements that, typically, involve (a) the license of a trademark, (b) the payment of an initial fee, and (c) a degree of control that is exerted over the licensed business. Under the Federal Franchise Rule, before offering or selling a franchise, a franchisor must disclose its FDD not less than 14 days prior to accepting any funds from the franchisee or the signing of any agreements. The documents needed to start a franchise include the FDD, state specific addendums, financial statements, and an operations manual.
Alabama Franchise Law Links and Resources
You may find these links right helpful regarding Alabama franchise laws.
We also recommend visiting our interactive franchise registration map to learn more about state franchise laws, FDD registration states, and required franchise filings.