Kansas Franchise Law and Registration
Kansas Franchise Registration Status: Non-Registration State
State Registration Fee: $0.00
In the United States there are franchise registration laws at the federal and, sometimes, at a state level. Not all states have franchise registration requirements. States that do not require a franchisor to register for approval or file a Franchise Disclosure Document with the state prior to offering, selling or marketing in the state are considered to be a non-registration state.
Kansas is considered a non-registration state because there are no franchise registration requirements nor are there any requirements enacted by a business opportunity law in Kansas. Even though Kansas does not have franchise registration requirements on a state level, there are federal laws that are applicable when franchising a business in Kansas or when expanding a franchise in Kansas. The Federal Trade Commission requires that a franchisor (person selling the franchise) provide the franchisee (person buying the franchise) with a copy of their Franchise Disclosure Document at least 14 days prior to the date of purchasing the franchise location.
Franchise Disclosure Document
A Franchise Disclosure Document, sometimes referred to as an FDD, is a legal document created with the purpose of disclosing information about the franchised business and its franchisor(s). It is important that the FDD be constructed properly and contain the correct information regardless of the state the franchise is being sold in.
If your franchise is being sold in a state that has a franchise registration law or a business opportunity law in place you may be required to submit your FDD to the state for review prior to being able to offer or sell franchise locations in that state. While this is not applicable in the state of Kansas, it is something to keep in mind if you plan on offering or selling franchises in a franchise registration or filing state. Some states have strict requirements for what needs to be present in the Franchise Disclosure Document. It is best to leave the drafting of the franchise disclosure document, state franchise registration and franchise law information to a franchise lawyer with a reputable background.