This document may be used to register an offer and sale of franchises or to register a renewal statement or annual report. The document also contains a certification statement.
South Dakota North Dakota Franchise Registration Application
Category:
State:
Multi-State
Control #:
US-4-09-STP
Format:
Word;
Rich Text
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How to fill out North Dakota Franchise Registration Application?
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FAQ
South Dakota is a franchise registration state. So, you must file your FDD with the Division of Insurance and Securities Regulation of the South Dakota Department of Labor and Regulation prior to offering or selling franchises in the state.
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.
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 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.
North Dakota is a franchise registration state. Before you offer or sell a franchise in North Dakota, you must register your Franchise Disclosure Document (FDD) with the North Dakota Securities Department.
For example; Toyota and Chevrolet dealerships, or Pepsi and Coca-Cola soft drink bottlers, are products or trade names in which the product itself is what the franchisor is selling.
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.
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.
