Oklahoma Franchise Registration
Oklahoma is considered one of the best states to do business, mainly because of the pro-business environment. However, many factors to consider before starting or relocating your business, such as cost of living, labor, and tax climate. Well, Oklahoma checks all the boxes as it has one of the lowest living costs in the country, attracting a vast majority of people looking for a place to settle and work. The state also maintains simple regulations and low taxes, enhancing the ability of businesses to thrive. Before franchising in Oklahoma, you are guaranteed numerous benefits and opportunities for a successful venture.
The United States categorizes states that lack franchise-specific laws as non-registration, and Oklahoma is among these states. Although Oklahoma does not require franchisors to register or file their Franchise Disclosure Document, it has a Business Opportunity Sales Act. Franchisors venturing into the state are required to comply with this act unless they meet the requirements set by the Federal Trade Commission’s Amended Franchise Rule (FTC Rule).
According to the Federal Trade Commission Amended Rule, franchisors must maintain an updated Franchise Disclosure Document. Before committing to an agreement, a prospective franchisee relies on the information contained in the FDD to make an informed decision. In addition, the Franchise Disclosure Document Contains Pertinent Information about the business and the owner. Therefore, failure to maintain an updated Franchise Disclosure Document prevents you from conducting business with a prospective franchisee.
The FTC Rule mandates that all franchisors must provide a copy of the FDD to a prospective buyer at least 14 days before the sale of the franchise location. This ensures that franchisees have enough time to analyze the document and seek legal counsel if need be. Since Oklahoma has not enacted franchise-specific laws, it is vital to familiarize yourself with the federal franchise laws to avoid infringements. Talking to a professional franchise attorney is recommended to help with the nitty-gritty regarding federal requirements.
For franchisors who have not complied with the Federal Trade Commission Trade, the state demands compliance with the Business Opportunity Sales Act. More information regarding franchising in Oklahoma and the requirements you need to meet is accessed at the Department of Securities. But, again, working with a professional attorney goes a long way in ensuring you are on the right side of the law, significantly when you risk being penalized or fined if you fail to comply.
The Franchise Disclosure Document is essential and is a crucial component when offering or selling a franchise location. It is always advisable to keep it updated with relevant information about critical aspects of the business and any changes made. The Oklahoma Tax Commission also helps franchisors navigate through the state and federal requirements. Finally, consult a franchise lawyer to ensure you have all the relevant information when franchising in Oklahoma.
For more information on how to register your franchise in Oklahoma, visit the Franchise Marketing Systems site: www.FMSFranchise.com/about-franchising/guidelines/stateregulations