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Iowa Franchise Registration and Business Opportunity Requirements

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

Iowa is a non-registration state and does not require that a franchise be registered or have documents reviewed by the state prior to offering or selling franchises in the state of Iowa. However, there is a business opportunity law enacted. Franchisors in compliance with the Federal Trade Commission's Franchise Rule are able to file for an exemption from the Iowa business opportunity law.

Iowa Franchise Exemption from Business Opportunity Law

Chapter 551.A.4 of the Iowa General Business Opportunity Law states that a franchisor is exempt from the business opportunity law in Iowa as long as the franchisor qualifies for exemption by providing the buyer with a current version of the franchise disclosure document during the first face to face meeting or 14 days prior to the date of sale, whichever is sooner.

Federal Franchise Laws Are Applicable in Iowa

Federal franchise laws in place by the Federal Trade Commission apply when franchising in Iowa, as they do with any other state within the U.S. Franchisors are responsible to comply with the FTC Federal Franchise Rule and are responsible for providing buyers with their current franchise disclosure document (FDD). The FDD, a legal document, needs to be carefully prepared in order to properly disclose information about the franchise opportunity.

Useful Iowa Franchise Resources

Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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