Oversight of franchise and business opportunity offerings is an important consumer protection for hundreds of thousands of people who invest in these operations. It requires careful attention by both federal and state authorities.
At the state level, oversight of franchising is grounded in the traditional commitment of grassroots officials to protect consumers whenever possible before they part with their money; and in those cases where money is lost in a fraudulent deal, to marshal the enforcement resources to shut down the violator and seek restitution if possible.
California adopted the first state franchise statute in 1971. Today, several states have statutes that regulate the offering of franchises for sale. These statutes are designed to provide greater protections to prospective franchisees and prevent fraud in the sale of franchise offerings.
In addition to addressing questions of interpretation, the Franchise Commentary contains several sample answers to common franchise disclosure issues. The Franchise Commentary also incorporates items under several previous commentaries NASAA adopted under the 1994 Uniform Franchise Offering Circular Guidelines, to the extent the guidance offered continues to apply under the new Guidelines. NASAA consulted with Federal Trade Commission staff on the Franchise Commentary, on issues related to disclosure requirements adopted under the FTC’s Amended Franchise Rule.
Forms, Instructions, and Information for preparing a Franchise Disclosure Document
- NASAA Franchise Multi Unit Commentary (Adopted Sept. 16, 2014)
- NASAA Commentary on 2008 Franchise Registration & Disclosure Guidelines (Adopted April 27, 2009)
- State Securities Agencies with Jurisdiction Over Franchise and Business Opportunities
- Maryland Interpretive Opinion/No Action Position on Revision to Delivery Requirements Under Maryland Franchise Law (June 15, 2010)
- Wisconsin E-Filing Application Update (Dec. 17, 2009)
- Washington State Amends Franchise Registration Rules(Nov. 2, 2009)
NASAA Franchise Statements of Policy
- NASAA Model Franchise Exemptions, Adopted September 9, 2012
- 2009 NASAA Statement of Policy: Uniform Franchise Delivery Requirements
- 2003 Statement of Policy Regarding Electronic Delivery of Franchise Disclosure Documents
- 2001 Statement of Policy Regarding Franchise Advertising on the Internet
- 1998 Statement of Policy Regarding Offers of Franchises on the Internet
- (NOTE: Amended and restated as of July 1, 2008 by: 2008 Franchise Registration and Disclosure Guidelines