New Mexico Franchise Registration
If you are considering franchising in New Mexico, you couldn’t have picked a better state to do business. The condition is deemed one of the best business climates in the country, with numerous benefits to businesses starting or relocating there. One of the significant advantages New Mexico offers to business owners is the tax structure designed to support entrepreneurs. Some of the supporting factors you stand to benefit from include: zero inventory tax, low energy cost, affordable real estate, and low property tax. New Mexico and its communities provide all businesses, regardless of industry, with aggressive incentives for growth.
New Mexico does not have any enacted franchise laws at the state level, making it a non-registration state. This means that franchisors are not required to file or register their franchise business with the state if they intend to offer or sell a business. Since the state doesn’t have any franchise laws, business opportunity laws, or friendship laws, franchising is governed by Federal Trade Commission Amended Franchise Rule (FTC Rule).
The FTC Rule governs franchising not only in non-registrations states but also in registration states. Regardless of your state, Federal franchise laws set specific requirements that franchisors must abide by before franchising. For example, according to the Federal franchise laws, the franchisor must maintain an updated Franchise Disclosure Document (FDD) before selling a franchise location.
A well-drafted FDD provides prospective franchisees with all the relevant information about critical aspects of the business. Aside from giving the buyer a better view of the franchise, it also helps franchisors comply with federal franchise laws. New Mexico Taxation Revenue department helps franchisors learn about franchising and the requirements to be met. With federal franchise laws constantly changing, it is advisable to consult a franchise attorney to avoid infringements.
The Federal Trade Commission Amended Franchise Rule governs the relationship between the franchisor and franchisee for healthy business interaction. These laws aim to protect both parties from incurring either damages, losses, and other shortcomings. For example, according to the FTC Rule, franchisors in New Mexico must present the franchisee with a copy of an update FDD 14 days to the date set for sale. This gives the franchisee ample time to go through the document and better understand the franchise, among other aspects.
The Franchise Disclosure Document is essential for franchisors, especially if the end goal is to grow the company from one level to another. If you are looking to franchise into the state of New Mexico, it is vital to have a well-drafted disclosure document with the help of a franchise attorney. Franchising is an excellent way to expand your business, and it only makes sense to do it the right way.
For more information on how to register your franchise in New Mexico, visit the Franchise Marketing Systems site: https://www.fmsfranchise.com/learn/resources/state-guidelines/