New Jersey Franchise Registration Status: Non-Registration State
State Registration Fee: $0.00
The State of New Jersey is not a franchise registration state. This means that if you would like to offer or sell a franchise in the State of New Jersey you are not required to register your Franchise Disclosure Document (“FDD”) with a New Jersey State regulator. Although you are not required to register your FDD with the State of New Jersey you must nevertheless ensure that your New Jersey franchise offering complies with the Federal Franchise Laws which means that you must maintain an updated FDD that is properly disclosed to a prospective New Jersey franchisee before offering or selling a franchise.
To afford New Jersey based franchisees with additional protections and rights after they sign a franchise agreement, New Jersey has enacted the New Jersey Franchise Practices Act which prohibits certain franchise agreement provisions and actions relating to the franchisor-franchisee relationship.
There are no franchise laws in New Jersey requiring the registration of a FDD. FDD disclosure in the state of New Jersey is governed by the FTC Franchise Rule requiring, among other things, that a Franchisor disclose a valid and updated FDD to a prospective franchisee no less than 14 calendar days before signing a franchise agreement or paying any money to the franchisor.
The New Jersey Franchise Practices Act (N.J. Stat. Ann. Sections 56:101, et al.) is a franchise relationship statute that governs relationships between franchisors and franchisees. Under the New Jersey Franchise Practices Act franchisees must be aware of the additional rights that they are afforded and franchisors must carefully consider and comply with the additional obligations imposed on them.
For example, under the New Jersey Franchise Practices Act, among other things:
There are other prohibitions contained in the New Jersey Franchise Practices Act and these prohibitions relate to balancing the franchisor franchisee relationship and preventing franchisors from unreasonably interfering with the management of franchisee and imposing what the act refers to as “unreasonable standards of performance” on the franchisee.
From a best practices standpoint, if you are a franchisor offering or selling franchise in New Jersey or you plan to franchise your New Jersey business, you need to be aware of the requirements imposed by the New Jersey Franchise Practices Act. Also you must insure that your FDD and your franchise disclosure process complies with the Federal Franchise Laws.
To learn more about services we offer for starting a franchise, franchise expansion and franchise compliance, visit our Franchise Counsel Program page.
Additional New Jersey franchise law links and resources, include:
In this guide you’ll learn the basics of franchising, how to franchise your business, and how to win at franchising. We’ll also take a deeper dive into legal requirements for franchising and why they matter, steps to take before and after you launch your franchise, and even some tips on... read more
When considering expanding a business both franchising and licensing are possible options. In this guide, you'll learn the differences of franchising and licensing and understand how each will affect you. read more
Are you a successful business owner? Are you looking for ways to expand your business? If so, this article will provide the answers you need to decide whether franchising your business is the right step for you. In short, franchising allows you, the franchisor, to create a relationship among several... read more
Under federal law, prior offering or selling a franchise in any state, franchisors are required to disclose a franchise disclosure document (FDD) to their prospective franchisees. In addition to federal law certain states, including the franchise registration states, require that franchisors register their FDD with the state. The legal documentation... read more
Franchising may be the next big step for your business and represents an opportunity to grow your brand. So, how do you know if franchising is right for you? How do you know if your business is franchisable and, if it is, whether or not you should franchise your business?... read more
Key strategies to accelerate franchise growth for startup and emerging franchisors In this webinar, franchise attorney Charles Internicola and Nick Powills, founder of No Limit Agency and 1851 Franchise, discuss key strategies to accelerate franchise growth through PR and digital media. Some topics include: Steps franchisors should take when it... read more
One of the biggest issues for emerging franchisors is not having a plan for insurance and system-wide protection. What do emerging brands need to know when they're starting off, who should they rely on, and how can they plan ahead? Get an insurance game plan to protect your franchise system... read more
Key strategies for developing the right logo & trade dress to drive franchise growth with branding and design expert Dan Antonelli. Dan is the author of ‘Building a Big Small Business Brand’ and is the creative director of the branding firm KickCharge Creative. Learn how to drive franchise growth and... read more
With services to make your growth strategy simple, cost effective, and with a team excited to help you, let’s talk about how we can help grow your business.
Fill out the following form and we’ll contact you as soon as possible. To reach our team directly, give us a call at (800) 976-4904.
An attorney client relationship is not established by submitting this initial contact information.