AZ Franchise Legal Professional Discusses Franchise Exemptions

When Can You Avoid Enrolling A Company?

Fifteen states have franchise investment laws and regulations that want franchisors to deliver pre-sale disclosures to potential buyers. Of these fifteen, 13 treat the purchase of a franchise corporation similar to the sale of a security. A franchise attorney in Arizona may help with this subject.

Under the right circumstances, benefiting from size and experience exemptions can save an individual selling a franchise corporation both time and expense when the time comes to sell. Being a larger and much more experienced franchisor, or selecting to work with an ample and sophisticated franchisee, may have major advantages. In several instances, the size and knowledge of a franchisee enables buyers to take advantage of certain franchise corporation exemptions from federal and state franchise business disclosure or registration laws. There are some franchise registration states that also permit their administrators to give “discretionary” exemptions to franchisees on a case-by-case basis. These exemptions can be granted in light of a certain franchisor’s or franchisee’s size and knowledge.

Also, there are events when a dealing may be accessible as an exemption under federal government law (FTC Rule), but most likely is not applicable in the exact state where the franchise corporation is located. Furthermore, a deal might be exempt from appropriate state subscription requirements, but most likely is not exempt from state disclosure prerequisites. Exemption-based franchising has lots of moving parts, for example the inside processes of a clock. Searching for a Mesa franchise lawyer can help guarantee that you apply for each exemption you could are eligble for, helping you save time and cash either in the set-up stages or selling levels of your franchise corporation.