Registration Laws for Franchising a Business in Colorado | Internicola Law Firm

Registration Laws for Franchising a Business in Colorado

Colorado Franchise Registration Status: Non-Registration State
State Registration Fee: $0.00

Colorado is a geographically diverse area and is known for attracting many tourists. It is no mystery why a franchised business would want to expand into Colorado. However, with there being so many different laws regarding franchising in the United States it is helpful to get familiar with what is legally required of you when franchising in Colorado.

First Things First – Franchise Registration Laws in Colorado

Colorado is one of the states that are considered a non-registration state. Basically, a non-registration state means that registering your franchise disclosure documents or notifying the state that you intend to offer or sell franchises is not required of you. There also are not any business opportunity laws enacted and no business opportunity registration is required.

Federal Franchise Laws Apply

Regardless of a state’s franchise registration laws being non-registration, filing or registration all states have one thing in common when it comes to franchise laws – they all must comply with the federal franchise laws that are in place by the Federal Trade Commission (FTC). This means that it is legally required of you to provide anyone who is planning on purchasing a franchise from you a current copy of your Franchise Disclosure Document 14 days prior to the date of selling the franchise location to them.

The FTC expects businesses that meet the criteria of being a franchise to have and maintain a current Franchise Disclosure Document. A Franchise Disclosure Document, also known as an FDD, is a legal document that discloses information about the franchise to the buyer (franchisee). This document is large and contains information about various aspects of the franchised business including but not limited to territory sizes, affiliates, sale of the franchise and royalties. It is extremely important to seek out the help of a franchise lawyer to franchise your business in Colorado or any other state. A franchise lawyer is familiar with the franchise registration requirements in each state, the federal franchise laws and is the best person to develop a compliant franchise disclosure document for your franchise.

Additional Colorado Resources

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