Louisiana Franchise Law & Registration Requirements | Internicola Law Firm

Louisiana: A Non-Registration State

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

Louisiana is considered a non-registration state, meaning there are no franchise registration laws or filing laws that apply to franchising in this state. When franchising in Louisiana federal franchise laws do still apply regardless of Louisiana being a non-registration state. When franchising in any state you will always need to abide by the law outlined in the Federal Trade Commission’s Franchise Rule.

Franchise & Business Opportunity Law

They are exempt from the Louisiana Business Opportunity Sale law on the basis of having a federally or state registered trademark. It is important to keep in mind that regardless of which state you franchise your business in you will still need to adhere to federal franchise laws. The Federal Trade Commission (FTC) regulates federal franchise law. The FTC requires a franchisor provide the franchisee with a copy of the franchise disclosure document no later than 14 days prior to the sale transaction.

Although Louisiana is not a franchise registration state, it does have Business Opportunity Laws and, in particular, Louisiana Business Opportunity Statute Title 51, Section 1821 broadly defines a “business opportunity” as “…the sale or lease for an initial required consideration exceeding three hundred dollars of any goods or services which are transferred to a purchaser for the purpose of enabling the purchaser to start a business…” Exempt from the Louisiana Business Opportunity provisions are transactions involving “…the sale or lease of a sales plan or marketing program made in conjunction with the licensing of a registered trademark or service mark…” Franchisors without registered trademarks should be aware that Louisiana business opportunity laws apply to them.

Franchise Disclosure Document Preparation

When preparing a franchise disclosure document it is important to keep in mind that it is a legal document. Legal documents need to meet certain standards. The best person to prepare a franchise disclosure document is a franchise lawyer whether you are franchising in a non-registration state, such as Louisiana, a filing state or a registration state.

Louisiana Franchise Resources

To view the services we offer to franchisors, visit our Franchise Counsel Program page. Also, if you are interested in franchising in additional states, we recommend visiting our State Franchise Registration Law page. The page has an interactive map and is helpful when getting familiar with the requirements that each state has regarding franchise registration laws.

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