Massachusetts Franchise Law and FDD Registration

Massachusetts Franchise Law

Massachusetts does not require that a franchise be registered or file any documentation with the state of Massachusetts prior to offering or selling franchises in the state. Massachusetts is considered a non-registration state. However, franchisors should be careful to make sure they are in compliance with federal franchise laws prior to selling franchises in any state.

Information You Should Know

Franchising is a regulated industry and one critical obligation that exists between franchisors and franchisees relates to the disclosure of a Franchise Disclosure Document ("FDD"). The FDD is designed to provide prospective franchisees with information about their potential franchise investment, including information about the franchisor, the estimated initial investment, recurring obligations and fees, the scope of any protected territory and other disclosures. The Federal Trade Commission requires franchisors to disclose the FDD to the buyer no later than 14 days prior to the date of the anticipated sale. If you are considering franchising your business or expanding your franchise in Massachusetts, or any state, one of the steps that you need to evaluate and consider is the role of a franchise lawyer and how he or she can assist you with your franchise transaction.