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The franchise legislation imposes on all parties to a franchise agreement a duty of fair dealing in the performance and enforcement of the agreement. This includes the duty to act in good faith and in ance with reasonable commercial standards.
Capital Investment: Establishing a franchise requires a large investment of both time and money. At a minimum, a franchisor should plan to spend on business development, a flagship store, legal document preparation, marketing, and packaging plans, and recruiting and training franchisees.
The franchise rule requires franchisors to make material disclosures in five categories: the nature of the franchisor and the franchise system. the franchisor's financial viability. the costs involved in purchasing and operating a franchised outlet. the terms and conditions that govern the franchise relationship.
Filing Requirements and Fees for Franchisors in Indiana Indiana charges an initial filing fee of $500 for franchise registration. The fee for renewals is reduced to $250, but renewals must be received before the previous registration expires in order to be accepted.
Alaska is not a Franchise Registration State. Although Alaska has enacted business opportunity laws, franchisors that are in compliance with the Federal Franchise Laws are exempt from Alaska's business opportunity disclosure requirements.
The franchise disclosure document (FDD) is a legal disclosure document that must be given to individuals interested in buying a U.S. franchise as part of the pre-sale due diligence process. The document contains information essential to potential franchisees about to make a significant investment.
Federal Franchise Registration Requirements The federal Franchise Rule does not require that a franchisor register or file its FDD with any specific federal agency, including the FTC.
Indiana is a franchise registration state. Under Indiana's Franchise Act, before you offer or sell a franchise in Indiana, you must file and register your FDD with the Securities Division of the Indiana Secretary of State.