Wyoming Franchise Registration
The state of Wyoming is famous for having the best business climate in the United States. The state lacks individual and corporate income tax makes it the perfect place for businesses looking to expand. With one of the lowest sales tax rates in the country, the state creates a conducive environment for businesses to survive even in challenging economic conditions. In terms of quality of life, Wyoming ranks among the top states regarding material well-being which is not a bad thing. If you are looking for a place to put strong business roots, you cannot overlook the business climate of Wyoming.
When franchising your business in the state, Wyoming is among the non-registration states. This means that you are required to register or file any paperwork with the state before offering or selling a franchise location in the state. In addition, although Wyoming has not enacted franchise laws, all franchisors must adhere to the Federal Trade Commission Franchise Amended Rule.
According to the Federal Trade Commission Franchise Rule, a franchisor must provide franchisees with an updated copy of the Franchise Disclosure Document to sell a franchise properly. This needs to take place at least 14 days before the actual date of the franchise sale. It is advisable to consult an expert franchise attorney to help you in the legal processes involved in franchising. This includes drafting your Franchise Disclosure Document to describe specific aspects of the franchise. Improper disclosure of your FDD results in violation of FTC Rules and costly penalties and fines.
The Federal Franchise Rule stipulates that all franchisors in registration and non-registration states must issue prospective franchisors a copy of the updated Franchise Disclosure Document. This provides the franchisor with all the relevant information before moving forward with the agreement or making payment. The document needs to contain all the 23 items in compliance with Federal Trade Commission Amended Rule.
The Federal Franchise Rule mandates that the issuance of the FDD should be on the date the franchisor designates the document. Determining the issuance date and compliance is a self-certifying process since no specific federal agency is in charge of reviewing or registering Franchise Disclosure Documents. This applies to the state of Wyoming, as it does not have particular franchising laws requiring franchisors to register with the state.
Although registration states require franchisors to renew their Franchise Disclosure Document annually within 120 days at the end of the financial year, this does not apply to non-registration states like Wyoming. However, according to the Federal Trade Commission Amended Rule, franchisors must update the document before offering or selling a franchise location to a prospective franchisee. During the sale of the franchise, any changes after negotiation amendments must be made.
It is advisable to consult a professional franchise attorney before franchising in any state, registration, and non-registration. It also helps navigate the different franchise laws at the state and federal levels to avoid law infringements.
For more information on how to register your franchise in Wyoming, visit the Franchise Marketing Systems site: https://www.fmsfranchise.com/learn/resources/state-guidelines/
