TEXAS FRANCHISE LAWS
Franchise Registration in Texas. There is no state franchise registration required in Texas.
Business Opportunity Exemption Registration in Texas. The Texas Business Opportunity Act is broad enough to cover most franchises. Texas Business and Commerce Code Section 51.003(a).
However, it includes an exemption for franchises meeting the federal definition of a franchise under the FTC Franchise Rule if the franchisor complies with the requirements of the FTC Franchise Rule and if the franchisor files an exemption notice in Texas before offering for sale or selling a franchise in Texas. Texas Business and Commerce Code Section 51.003(b)(8).
To claim the exemption, the franchisor must file the required exemption form in Texas and pay a one-time the annual filing fee of $25. The Texas business opportunity regulator’s web site, which includes a link to the required form, is here.
Franchise Disclosure in Texas. Texas has no state franchise disclosure laws. So, there are no special state disclosures required in an FDD used in Texas.
Franchise Relationship Law in Texas. Texas has no state franchise relationship laws for business format franchises.
Please see important information about US federal and state franchise laws here.
We work with start-up and existing franchisors throughout the United States (and internationally). We would be delighted to discuss Texas franchise law with you. Please contact us for a free initial consultation about your particular situation.
Vinson Franchise Law Firm