Texas Franchise Law and FDD Registration | Internicola Law Firm

Texas Franchise Law and FDD Registration

Texas is a Franchise Filing State. The one-time Texas FDD filing fee is $25.

Texas Franchise Law

Texas is a franchise filing state and it is not a franchise registration state. Although you are not required to register your Franchise Disclosure Document (“FDD”) with a Texas state regulator, before offering or selling any franchises in Texas you must first file a Business Opportunity Exemption Notice with the Texas Secretary of State. Texas has not enacted franchise specific laws but it has enacted the Texas Business Opportunity Act which governs the offer and sale of business opportunities in the state of Texas and requires sellers of business opportunities to be registered with the State and to make a pre-sales disclosure similar to an FDD. As a franchisor, if your FDD is current and in compliance with the Federal Franchise Rule, you may claim an exemption to Texas’ business opportunity laws by filing a one-time “Business Opportunity Exemption Notice.” Once you file your one-time business opportunity exemption notice you may sell franchises in Texas under a properly issued and compliant FDD.

To learn more about registering your FDD in Texas and how we can help, give us a call at (800) 976-4904 or contact us.

Texas Franchise Law, Business Opportunity, and FDD FAQs

Who Regulates Franchises in Texas?

Texas has not enacted franchise laws but has enacted business opportunity laws, and the Texas Secretary of State regulates and oversees the enforcement of the Texas Business Opportunity Act.

Does the Texas Business Opportunity Act Apply to Franchises?

The definition of a “business opportunity” under the Texas Business Opportunity Act is broad and includes franchise relationships. However, if you maintain a current and valid FDD and are in compliance with the Federal Franchise Rule (learn more about the Federal Franchise Rule) and the FTC’s FDD disclosure requirements, you may claim an exemption to the business opportunity laws. Once an exemption notice is filed, you will be in compliance with Texas’s business opportunity laws.

What Should I Include with My Texas Franchise Filing?

You are required to file the Business Opportunity Exemption Notice that is referred to as Form 2703. When filed, it provides the Texas Secretary of State with the required information necessary to claim an exemption to the Business Opportunity Investment Act. Information included in the exemption notice:

Where Is the Texas Franchise Exemption Notice Filed?

Business opportunity exemption notices are sent to:

Texas Secretary of State
Registrations Unit
P.O. Box 13193
Austin, TX 787-3193

What If I Don’t Have a Current or Compliant FDD?

Then the exemption will be invalid, and you will be required to comply with the Texas Business Opportunity Act, which requires registration of your business opportunity and a pre-sale disclosure process.

Helpful Links Concerning Texas Franchise and Business Opportunity Laws:

Visit our interactive franchise registration map and learn more about state franchise laws, FDD registration states, and required franchise filings.

To learn more about how we can help you with your franchise registrations and growing your franchise in Texas and across the United States, contact us at (800) 976-4904 or contact us online.

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