Texas is a Franchise Filing State. The one-time filing fee for a Texas filing exemption is $25.
Texas is not a franchise registration state. Prior to offering or selling a franchise in Texas you do not need to register your Franchise Disclosure Document (“FDD”). However, because Texas has enacted business opportunity laws, as a franchisor, you are required to file a Business Opportunity Exemption Notice with the Texas Secretary of State before selling a franchise in Texas.
The Texas Business Opportunity Act, which governs the offer and sale of business opportunities in the state of Texas, requires that business opportunities be registered with the State, and requires a pre-sale disclosure similar to an FDD. As a franchisor, if your FDD is current and in compliance with the franchise rules and regulations of the Federal Trade Commission, you may claim an exemption to Texas’s business opportunity laws by filing a one-time “Business Opportunity Exemption Notice.”
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 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.
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.
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:
Business opportunity exemption notices are sent to:
Texas Secretary of State
P.O. Box 13193
Austin, TX 787-3193
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.
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.
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
For very good reasons, the questions of “is my business franchisable?” and “can my business be franchised?” come up often. Assuming that you possess the right mindset and franchise goals (a topic that we discuss in a separate article) there are core franchise factors that either your business must possess... 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.