Tennessee Franchise Laws & Regulations
Tennessee Franchise Registration Status: Non-Registration State
State Registration Fee: $0.00
Franchising is a proven business model that can assist with the development and expansion of a business. If you are considering franchising a business in Tennessee or if you are already a franchisor and are looking to expand your franchise concept to Tennessee it is important to know what the franchise laws and requirements are.
There are three types of states when it comes to franchising in the U.S. The first type is a registration state. Registration states require that the franchisor register their franchise disclosure document along with other items with the state and, in most cases, wait for approval from the state prior to offering or selling franchises. The second type of state is a filing state. Filing states are generally states that have a business opportunity law in place. Depending on the state the franchisor will need to file for an exemption or submit documents to the state regarding the franchise so the state can have them on file. The third type of state is a non-registration state. Non-registration states do not have franchise laws or business opportunity laws that require the franchisor to register, file or give notice to the state prior to selling or offering a franchise in the state. Tennessee falls into the third category as a non-registration state.
Tennessee, and all other states, regardless of state registration requirements, still need to follow and abide by federal franchise laws. The Federal Trade Commission requires franchisors to maintain a franchise disclosure document ("FDD"). An FDD is a document that contains information about the franchise and it's franchisor(s) and must be disclosed to a buyer no less than 14 days prior to the sale of a franchise according to federal laws.
Process for Starting a Franchise or Expanding a Franchise in Tennessee
If you are a successful Tennessee business and you want to franchise your business then it is critical to seek for an experienced franchise lawyer who will work with you and evaluate your business (to see if your business is franchisible) and, if franchising is right for you, he or she will develop an extensive franchise program, including the preparation of your FDD, the preparation of your Franchise Agreements and the registration of your franchise offering. If you are already a franchisor and are looking to expand your franchise in Tennessee or any other state a franchise lawyer will be able to help ensure that you are in compliance with state and federal franchise laws and will assist in registering and filing paperwork in the appropriate states.
- Federal Trade Commission – Regulates franchise law at a federal level
- FTC Franchise Rule – Federal Trade Commission's federal franchise law
For additional information on state franchise laws and registration requirements, visit our State Franchise Registration Law page. If you would like to learn more our franchise compliance program for franchisors, visit our Franchise Counsel Program page.