Nebraska Franchise Registration
Nebraska is among the top states in the US in terms of a conducive business climate, with a strong logistics and transportation network, job-ready workforce, and business resources. These factors attract many small and big businesses, making it the most competitive state for companies in the Midwest. In addition, the state has a pro-business tax structure, with several tax benefits, including no inventory tax, sale tax, state property tax, and personal property tax; Nebraska ensures that companies thrive. Nebraska has attracted so many businesses that it heavily relies on outside investment to prove the conducive business environment.
Nebraska is not a franchise registration state but a filing state which requires franchisors to file a notice with the State of Nebraska Department of Banking and Finance, Bureau of Securities before offering or selling a franchise. The state requires a filing fee of $100 when filing your Franchise Disclosure Document. The filing requirements determine whether you are using a “nation type” or a “state specific” disclosure document. For example, according to the Federal Trade Commission laws, a nation-type disclosure document is considered a Uniform Franchise Offer Circular or a Franchise Disclosure Document.
A “State Specific” Nebraska Disclosure Document regulates franchises and business opportunities under the Nebraska Seller-Assisted Marketing Plan Act (SAMP Act). The act stipulates that franchises and business opportunities must be filed with the Nebraska Bureau of Securities. The SAMP Act provides franchisors the option of preparing a Nebraska-Compliant Franchise Disclosure Document, which is only used within the state. Franchisors relying on a Nebraska specific disclosure document are required to familiarize themselves with the following filing information: a state-specific disclosure document, a one-time initial filing fee of $100 that is renewed for a fee of $50, and a list of residence names and names of those selling the franchise.
A “National Type” Disclosure Document, on the other hand, stipulates that national franchisors need to maintain an updated Franchise Disclosure Document (FDD) in compliance with Federal Franchise Laws for you to qualify for an exemption filing with the Nebraska Bureau of Securities.
This will automatically be considered an “exemption notice,” meaning that you affirm to the Bureau of Statistics that your franchise sale or offering is compliant with Federal Franchise Rule. Filing requires a completed Seller-Assisted Plan Exemption Notice and a $100 filing fee. Filing is usually mailed to the State of Nebraska Bureau of Securities.
It is advisable to work with a professional franchise lawyer to help you navigate the requirements of the franchise laws at the state and federal levels. A lawyer also protects from law infringements that result in costly and penalties fines. If it’s your first time filing your franchise disclosure with the state, having a lawyer is vital for complying with the Nebraska filing requirements and Franchise Law.
For more information on how to register your franchise in Nebraska, visit the Franchise Marketing Systems site: https://www.fmsfranchise.com/learn/resources/state-guidelines/