Kansas Franchise Registration
Kansas has one of the top business climates in the West North Central Region of the United States. The state has attracted many businesses due to its national and international strategic investment, the reputation of innovation, prosperity, and economic growth. These factors have continued to bring in new companies, which amount to 6 billion dollars, and have created close to 26,000 new jobs in the state. In addition, Kansas is still making a strategic investment towards healthcare, infrastructure, education, and economic development, making it the best state for businesses to succeed.
The United States has franchise laws that are enacted at the federal and state level. However, not all states have enacted franchise laws at the state level, meaning that franchisors are not required to register or file their franchise with the state. For example, Kansas does not need franchisors to file their Franchise Disclosure Document or register for approval before offering or selling a franchise are considered non-registration states.
The state of Kansas is among the non-registration states since there are no franchise registration requirements. There are also no business opportunity regulations enacted in Kansas, which means you are not required to give any notice if you are selling or offering your business opportunity in the state. However, since Kansas does not have franchise registration requirements at the state level, franchises and business opportunities must adhere to franchise laws at the federal level.
According to the Federal Trade Commission, franchisors are mandated to provide prospective franchisees with a copy of the current Franchise Disclosure Document. This needs to happen at least 14 days before the actual date of the sale. In addition, the franchisor should ensure that the FDD is updated before engaging in any form of agreement or receiving payment from a franchisee.
The Franchise Disclosure Document needs to be updated to include all pertinent information regarding the franchised business. The document also sheds light on critical aspects of the company and the franchisor before any attempt to sell it. Since Kansas is a non-registration state, you are not required to present your FDD to the state. However, in registration states, franchisors must submit the form with a copy of the FDD for review before any attempt to offer or sell a franchise location.
It is advisable to consult a franchise attorney before franchising in any registration and non-registration to ensure you comply with enacted franchise laws at both state and federal levels. A franchise lawyer also helps franchisors in drafting a Franchise Disclosure Document. Thus, a franchise lawyer has the relevant knowledge and information in franchise law and franchise registration at the state and federal levels.
Failure to adhere to franchise laws can lead to costly penalties and fines. Before franchising your business in Kansas, you can access all the Kansas Department of Revenue information. This will help you avoid any infringements with the law.
For more information on how to register your franchise in Kansas, visit the Franchise Marketing Systems site: www.FMSFranchise.com/about-franchising/guidelines/stateregulations