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Does Texas Require the Registration of an FDD Prior to the Offer or Sale of a Franchise?

No. But, Texas does require registration of business opportunities. Due to Texas's broad definition of a "business opportunity," a franchise does qualify as a business opportunity and business opportunities do require registration and a disclosure process within the state. However, Texas does provide business opportunity registration exemptions for franchisors who satisfy the Federal Franchise Rule. If you are a franchisor who satisfied the Federal Franchise Rule prior to offering or selling a franchise in the State of Texas, you must file a Business Opportunity Exemption Notice with the Texas Secretary of State.

Learn more about Texas's Franchise and Business Opportunity Laws.

Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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