New Hampshire Franchise Registration
The state of New Hampshire has come a long way from shipbuilding, wool, and cotton mills to where it is today. Many industries have been established in the state, like retail, wholesale, services, manufacturing, and agriculture. When looking to move or start a business, infrastructure and the state of the economy are vital factors to consider. However, there are other benefits you stand to gain when setting up shop in New Hampshire. Some of these benefits include tax credits, zero income tax, and many other business incentives.
The United States has registration and non-registration states when it comes to franchising. New Hampshire is among the states that do not require a franchisor to register or file a franchise in the state. This means that there are no specific franchise laws enacted in New Hampshire, so a franchisor can offer or sell a franchise without notifying the state. However, since there are no particular franchise laws, franchisors must adhere to Federal Trade Commission Amended Rule (FTC Rule).
The FTC Rule governs the offering or selling of a franchise at a federal level. The FTC Rule stipulates that the franchisor must provide a copy of the updated Franchise Disclosure Document to a prospective franchisee before selling or offering a franchise. This should happen 14 days before the actual date of the franchise sale. Twenty-three items must be included in the Franchise Disclosure Document, which contains specific information such as required fees, bankruptcy, essential investment, litigation history, financial statement, earning claims, and other relevant information.
The Federal Trade Commission Rule stipulates that the franchisor must ensure the Franchise Disclosure Document contains all pertinent information that a prospective franchisee needs to know. This means that the franchisee should have an in-depth understanding of the franchise’s vital areas before committing to any agreement or making any form of payment. Failure to provide the franchisee with relevant information, you risk infringement with Federal franchise rules.
It is advisable to consult a professional franchise attorney to help you navigate the constantly shifting franchise laws at federal and state levels. Any franchise does not restrict franchisors in New Hampshire, and therefore a franchise attorney comes in handy when adhering to Franchise laws at the federal level. This goes a long way in ensuring that you are not fined or penalized for infringement by the Federal government.
Suppose you intend to franchise your business in New Hampshire. In that case, the New Hampshire Department of Revenue Administration ensures you are fully aware of the requirements by the state and federal government. The Federal Trade Commission Amended Rule requires all franchisors to provide franchisees with essential information regarding the franchise. This includes trademark, contact information, and a detailed description of the business. These disclosure requirements ensure that franchisees have all the information before committing to purchasing a franchise.
For more information on how to register your franchise in New Hampshire, visit the Franchise Marketing Systems site: https://www.fmsfranchise.com/learn/resources/state-guidelines/