state franchise laws

In some states, a law requires franchisors to comply with certain requirements in addition to the FTC Franchise Rule. Typically, ‘state franchise laws’ require a franchisor to do two things: 1) register with the state each year before starting to offer franchises; and 2) give disclosure. While most of these states have agreed to allow franchisors to use the FDD for providing disclosure, some states require slight changes or modifications to the FDD, which are accomplished through the use of state addenda and state amendments.

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