Rhode Island Franchise Registration
Rhode Island is a picturesque state that is found along the shoreline of New England. Its small size and population have resulted in a close-knit society where everybody looks out for one another. After years of poor financial stability, which led to sluggish growth in infrastructure, tax and regulations, and the economy, it has finally stepped up. With the current government, the state can provide its population with better facilities to foster a healthy business environment. In addition, the state is now focusing on building an economy that learns into the future with investment in innovation. This has been accomplished by creating a relationship between state colleges and companies, offering innovation vouchers of up to $50,000 for research and cooperation with research institutions.
Rhode Island is a franchise registration state, which requires you to register your FDD with the Rhode Island Department of Business Regulation, Securities Division before offering or selling a franchise. This is stipulated under the Rhode Island Franchise Investment Act, with an initial filing fee of $600 and an annual renewal fee of $300. In addition, the Security Division has to regulate and enforce the requirements of the state’s franchise laws, also known as the Rhode Island Franchise Investment Act.
The state requires all franchisors to include the following documents during the application process: an updated Franchise Disclosure Document, uniform consent to service of process, taxpayer affidavit, and filing fee in the amount of $600 by check payable to “The State of Rhode Island.” In addition, all applications, annual renewals, and amendments are filed by mail to the Rhode Island Department of Business Regulation, Securities Division.
Established franchisors looking to renew their franchise registration in Rhode Island are mandated to include all the required documentation done by mail or online. In addition, the state recommends that when submitting the taxpayer affidavit, it should be on a CD-ROM strictly to avoid registration denial. The Rhode Island Franchise Investment Act triggers registration requirements during transactions involving: sale of a franchise, when the sale of a franchise is accepted in the state or when an offer is directed into the state and is received, or the sale of a franchise outside the state but the buyer is a resident of the state.
There are some exceptional cases where a franchisor is not required to register their Franchise Disclosure Document with the state before selling it to a franchisee. Although they still need to file an exemption notice, these transactions are described in The Rhode Island Franchise Investment Act, under R.I. Gen. Laws 19-28. 1-6. These franchise sales are exempted because of the franchisor’s substantial assets, with at least 25 franchises currently operating within the state. Another reason for exemption is when a franchisor has a net worth of ten million dollars.
For more information on how to register your franchise in Rhode Island, visit the Franchise Marketing Systems site: www.FMSFranchise.com/about-franchising/guidelines/stateregulations