West Virginia Franchise Law
The state of West Virginia is considered a non-registration state. When it comes to franchising states are generally broken down into registration, non-registration and filing states. With West Virginia being a non-registration state it means that there are no special franchise requirements that must be completed prior to being able to offer or sell a franchise in the state of West Virginia. Sometimes when there aren't franchise registration laws enacted in a state there may be business opportunity laws that the franchise business falls under. This is not the case with West Virginia. West Virginia does not have a business opportunity law in effect.
Federal Requirements When Franchising
Franchisors selling franchise locations in West Virginia, or any state, still must comply with the Federal Trade Commission laws for franchises. The federal franchise laws in place are created to protect the franchisor and the franchisee, especially during the transaction process. The FTC's Franchise Rule requires that a franchisor disclose anyone interested in purchasing a franchise with an up to date copy of the franchise's Franchise Disclosure Document, also known as an FDD. Once the buyer has received a copy of the Franchise Disclosure Document there must be a minimum of a 14 day wait prior to completing the sale of the franchise. It is important to continuously remain in compliance with the federal franchise laws regardless of what state you are franchising in.
The Importance of a Franchise Disclosure Document
The Franchise Disclosure Document is used as a means of disclosing prospects of various aspects of your franchise prior to purchasing. This document is a thick document that contains information on a wide array of topics about your franchise. Topics include disclosure about persons who own the business, financial information, a break down of franchise costs, territory information and much more. It is important that this document be accurate and that the information be kept current.
West Virginia Franchise Law Links and Resources
You may find this links helpful regarding West Virginia franchise laws.
We also recommend visiting our interactive franchise registration map to learn more about state franchise laws, FDD registration states, and required franchise filings.