Texas Franchise Registration

Texas Franchise Registration

Texas Franchise Registration Guide

The Lone Star state of Texas is one of the top places to launch a business according to WalletHub.com, who took over 26 key indicators of viability and compared them across all 50 states; Texas ranked #1 in the study. Texas has a large market with tons of opportunities for franchisors. The population of Texas has an estimated 29.47 million people. Dallas, Houston, and San Antonio each rank within the top 10 most populated cities in the nation with over 1 million people each[1]. The Top State for Business Award by CNBC ranked Texas as #1 for the 4th year in a row thanks to its strong infrastructure, stable economic growth, and sturdy workforce. The state doesn’t have specific franchise laws, negating the hefty fees found in other states.  All of the right factors are in place to make Texas an absolute hot bed for entrepreneurship and franchise growth.  Most franchises MUST look to Texas as one of the best opportunities for their brand to scale.  

The Basics of Texas Franchise Registration:

Texas business regulations are encompassed within the Business Opportunity Act, and this state stands unique among the others with its definitions under the BOA. Texas is a Franchise Filing State. A franchisor must:

  1. File a Business Opportunity Exemption Notice.
  2. Pay the $25 fee.
  3. Ensure the FDD is compliant with Federal Franchise Rule (overseen by the Federal Trade Commission). 

When you are registered, you can search for Texas Franchise Registration approval here:

https://direct.sos.state.tx.us/businessopportunity/busopsearch.asp

Remember, Franchise Regulations can change anytime and certainly are updated annually, so be sure to check in with Texas’ page to get the latest information.

Let’s Break it Down…How do you Register a Franchise in Texas?

Every franchisor must file a Business Opportunity Exemption Notice prior to the selling of any units, basically asserting that the franchised business complies with the FTC and falls outside of the Business Opportunity Act. When initially filing your exemption notice for your franchise in Texas, be sure to include the following:

  1. A $25 filing fee made payable to the Texas Secretary of State.
  2. The legal name of the franchisor, plus all other names that the franchisor intends to conduct business.
  3. Address of principal business. (Note: the address must be updated if changed. Notify the state of the change on Form 2707. No fee for address change.)
  4. Proof that the FDD complies with FTC’s rules.

What’s Next to Register a Franchise in Texas?

With the above information in hand, you are ready to send in your franchise exemption notice:

Mail to:

Texas Secretary of State

Registrations Unit

P.O. Box 13193

Austin, Texas 78711-3193

Deliver to:

James Earl Rudder Office Building

1019 Brazos

Austin, Texas 78701

[1] https://worldpopulationreview.com/states/texas-population/

 

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