Oregon Franchise Law and FDD Registration

Oregon Franchise Law

Oregon is not a franchise registration state. Under Oregon franchise law if you maintain a current Franchise Disclosure Document (FDD) that has been issued in accordance with the Federal Franchise Rule you are not required to register or file your FDD with the state. Although FDD registration is not required, Oregon has enacted franchise relationship laws that govern the relationship between franchisor and franchisee. The Director of the Department of Consumer and Business Services regulates and enforces Oregon’s franchise laws.

What is a Franchise Under Oregon Law?

Under the Oregon Trade Regulation and Practices Act (ORS 650.005) a franchise is defined as:

Any contract or agreement, whether oral or written, by which:

• A franchisee is granted the right to engage in the business of offering, selling or distributing goods or services under a marketing plan or system prescribed in substantial part by a franchisor;

• The operation of the franchisee’s business pursuant to such plan or system is substantially associated with the franchisor’s trademark, service mark, trade name, logotype, advertising or other commercial symbol designating the franchisor of such plan or system; and

• The franchisee is required to give to the franchisor a valuable consideration for the right to transact business pursuant to the plan or system. Payment for trading stamps in itself is not consideration for the right to transact business pursuant to a plan or system.

Prior to offering or selling a franchise in the State of Oregon, as in all states, you must disclose your FDD not less than 14 days prior to the signing of any agreement or the payment of any funds.