1851

<p>In the minds of some, franchising might seem like the Wild West, with brands choosing to open anywhere at any time. That may have been the reality at one point, but these days, things are different. Now, there is extremely detailed regulatory legislation that can vary from state to state.</p><div>&nbsp;</div><div><span style="">According to Charles Internicola, managing partner and founder of The Internicola Law Firm, PC, there are some serious implications if these regulations are misunderstood, especially for emerging brands.</span></div><div>&nbsp;</div><div><span style="">&#8220;The states and getting your FDD (Franchise Disclosure Document) registered in those states has become the hub of franchise compliance for brands looking at expanding to these areas,&#8221; said Internicola. &#8220;The biggest issue franchisors run into relates largely in the ability to authorize the sale of a franchise in those states prior to registering.&#8221;</span></div><div>&nbsp;</div><div><span style="">Internicola went on to say that often times a civil suit will be filed by the franchisor, which can lead to a franchisee being able to break their agreement and to be paid damages, as in their investment.</span></div><div>&nbsp;</div><div><span style="">&#8220;We see it all the time</span><span style="">&#8212;</span><span style="">startup franchisors will jump the gun and start talking to someone in a registration state or even has someone in a registration state sign an agreement. This can be very bad for that brand,&#8221; Internicola said. &#8220;Doing so negates the franchise sale and will lead to the franchise having to legally notify the system of a rescission notice and pay all initial fees to the franchisee involved.&#8221;</span></div><div>&nbsp;</div><div><span style="">That kind of payout can be a tall order for any franchise brand. Regulations and laws around franchising are constantly changing and fluctuate on the federal and state level. Always consult a franchise lawyer and research individual state laws before making any moves.</span></div>

1851 Franchise

When it comes to franchising, detailed regulatory legislation can vary from state to state. Before you make a move, here's what you should know. 

This brand page has been paid for by 1851. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

Registration States: What You Need to Know

registration-states-what-you-need-to-know

TruBlue Home Service Ally

TruBlue Franchisees Champion Fall Prevention To Keep Seniors Safe at Home

trublue-franchisees-champion-fall-prevention-to-keep-seniors-safe-at-home

Pet Wants

FOX Reno: Summer Pet Safety With Pet Wants of Sparks

fox-summer-pet-safety-with-pet-wants-sparks

Workout Anytime

Workout Anytime Teams Up with Viral Baseball Star Kyle “KJ” Jackson to Inspire Fitness Journeys Nationwide

workout-anytime-teams-up-with-viral-baseball-star-kyle-kj-jackson-to-inspire-fitness-journeys-nationwide

Sola Salons

1851 Franchise Deep Dive graphic with Sola Salons logo

Sola Salons Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-sola-salons-franchise-costs-fees-profit-and-data

Paris Baguette Canada

image of paris baguette cake and franchise decorations

What Canadian Franchisees Want to Know: Paris Baguette Profit Potential and Franchisee Support

paris-baguette-franchise-canada-profit-support

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Keurig Dr Pepper Splits in $18 Billion JDE Peet’s Deal, Creating Global Coffee Giant

keurig-dr-pepper-splits-in-18-billion-jde-peets-deal-creating-global-coffee-giant

McDonald’s Rolls Out Major Value Push To Win Back Customers Amid Inflation

mcdonalds-rolls-out-major-value-push-to-win-back-customers-amid-inflation

Photo of Paris Baguette pastries and beverages 

Paris Baguette Celebrates 250th Café Opening in Frederick, Maryland, Accelerating Expansion and Reviving the Neighborhood Bakery Café

paris-baguette-250th-north-america-cafe

Restaurant Chains Open Their Wallets To Jump-Start Franchise Growth - 1851 Franchise

Restaurant Chains Open Their Wallets To Jump-Start Franchise Growth

restaurant-franchise-incentives-cash-royalty-holidays-fee-reductions

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

Wendy's CEO Kirk Tanner Steps Down - Breaking News - 1851 Franchise

Wendy’s CEO Kirk Tanner Steps Down Amid Challenges, Leaving Franchisees Facing Uncertainty

wendys-ceo-transition-kirk-tanner-franchisee-uncertainty

graphic image of a franchisee spotligh aman kaur of voodoo brewing

How This Trio of Friends Is Brewing Up Community With Voodoo Brewing Co. in Prosper, Texas

voodoo-brewing-franchisee-aman-kaur-prosper-texas

Franchise Deep Dive graphic with i9 Sports logo

i9 Sports Franchise Costs, Fees, Profit and Data for 2025

i9-sports-franchise-cost-fees-profit

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

1851 Franchisee Spotlight graphic with photo of Dan Ellestad and Seniors Helping Seniors logo

How This Marine Veteran Went From Military Service to Senior Care and Found His Purpose in Franchising

seniors-helping-seniors-dan-ellestad

Registration States: What You Need to Know

MORE STORIES LIKE THIS