Understanding Franchise Law in Colorado
Colorado is a non-registration state, meaning in the State of Colorado franchisors are not required to register or file their FDD with a state agency before offering or selling franchises. There are no state franchise registration fees, renewal deadlines, or amendment filings required under Colorado law.
However, franchisors operating in Colorado must comply with:
- The Federal Trade Commission (FTC) Franchise Rule
- Federal disclosure timing and anti-fraud obligations
- Trademark, contract, and consumer protection laws
This guide explains how franchise law applies in Colorado and what franchisors must know to stay compliant.
Colorado Franchise Law Overview
- Non-registration state — no state registration required
- No state filing fees
- No state renewal or amendment filings
- Federal law (FTC Franchise Rule) governs disclosure
Unlike franchise registration states — where the state enforces supplemental franchise laws and requires FDD registration before sales — Colorado defers to the federal framework and general business laws.
Who Regulates Franchises in Colorado?
Franchises in Colorado are regulated by:
- The Federal Trade Commission (FTC) under the FTC Franchise Rule
- Federal courts and enforcement actions
- Trademark and IP enforcement mechanisms
Colorado does not have a state franchise registration statute or a state business opportunity law governing franchise sales.
Franchise Disclosure Document (FDD) Requirements
Even though Colorado does not register FDDs at the state level:
- A compliant FDD is still required under federal law
- The FDD must include 23 disclosure items
- FDD must be delivered at least 14 days before signing or payment
- Annual updates and material amendments are still required
Federal Franchise Law (FTC Franchise Rule)
Franchisors offering or selling franchises in Colorado must comply with the FTC Franchise Rule:
- Include all required disclosure items
- Provide audited financials and Item 19 data (if claimed)
- Ensure disclosures are accurate and not misleading
- Update the FDD annually
- Amend for material changes before the next annual update
Non-compliance with the FTC Rule can result in enforcement actions, private claims, and rescission liability.
Strategic Franchise Considerations in Colorado
1. Documentation Accuracy
Even without state registration, sloppy FDDs or agreements create legal risk.
2. Item 19 Compliance
Financial performance claims must be supportable and compliant.
3. Franchise Agreements
Drafted agreements must protect your brand and minimize exposure.
4. Multi-State Growth
If you plan to expand beyond Colorado, proper structure now prevents costly revisions later.
Ready to Franchise and Grow?
While Colorado doesn’t require franchise registration, applying federal franchise law to your business requires experienced legal guidance.
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Colorado Franchise Law Links and Resources
You may find the links to the right helpful regarding Colorado 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.