Franchise Offerings Using the Internet
Posted on February 3, 2009 by Lizette Pirtle
When offering franchise opportunities using the Internet one must comply with state regulations requiring the posting of a disclaimer that specifically lists the states in which the company is NOT allowed to offer franchises.
These regulations can be summarized as follows:
1. If a franchise company has a current FDD (Franchise Disclosure Document) and has a federal trademark but is not registered in any states requiring a franchise registration or exemption filing, the disclaimer must list the states of:
· California (RS)
· Connecticut (ES)
· Florida (ES)
· Hawaii (RS)
· Illinois (RS)
· Indiana (RS)
· Kentucky (ES)
· Maryland (RS)
· Michigan (RS)
· Minnesota (RS)
· Nebraska (ES)
· New York (RS)
· North Dakota (RS)
· Rhode Island (RS)
· South Dakota (RS)
· Texas (ES)
· Utah (ES)
· Virginia (RS)
· Washington (RS)
· Wisconsin (RS)
RS= Registration State
ES= Exemption Filing State
2. If a franchise company has a current FDD (Franchise Disclosure Document), is NOT registered in any states requiring franchise registrations or exemption filings and does NOT have a federal trademark, the disclaimer must list the states of :
· California (RS)
· Connecticut (ES)
· Florida (ES)
· Georgia (NT-ES)
· Hawaii (RS)
· Illinois (RS)
· Indiana (RS)
· Kentucky (ES)
· Louisiana (NT-ES)
· Maine (NT-ES)
· Maryland (RS)
· Michigan (RS)
· Minnesota (RS)
· Nebraska (ES)
· New York (RS)
· North Carolina (NT-ES)
· North Dakota (RS)
· Rhode Island (RS)
· South Carolina (NT-ES)
· South Dakota (RS)
· Texas (ES)
· Utah (ES)
· Virginia (RS)
· Washington (RS)
· Wisconsin (RS)
RS= Registration State
ES= Exemption Filing State
NT-ES= No Trademark in Place Exemption Filing State
EXAMPLE:
A franchise company from Detroit, MI has a current FDD and a Trademark. In addition they have registered with the states of Michigan and Indiana and have filed for exemption in the states of Florida and Texas. This company’s disclaimer in their website must list the following states states of those in which they are NOT making an offer:
· California (RS)
· Connecticut (ES)
· Hawaii (RS)
· Illinois (RS)
· Kentucky (ES)
· Maryland (RS)
· Minnesota (RS)
· Nebraska (ES)
· New York (RS)
· North Dakota (RS)
· Rhode Island (RS)
· South Dakota (RS)
· Utah (ES)
· Virginia (RS)
· Washington (RS)
· Wisconsin (RS)
As they either register or file for exepmtions in different states they can delete that state from the disclaimer.
Related Posts
- Franchising – Federal (FDD) vs State Registrations
- Is the Name of your Business Protected?
- Social Media: How does it apply to franchising?
- Are You Ready To Franchise? If Not, What Can You Do Now?
You are welcome to use the information on this post; all I ask is that you give credit and provide a link to this post or the blog front page. Thank you.
Tags: FDD, Franchise Disclosure Document, Franchise Sales, Selling Franchises
