What are the regulations surrounding the sale of a franchise?

In New Hampshire, the regulation of franchise sales is overseen by the state’s Business Regulations Division and the Attorney General’s Office. Franchises are required to register with the Attorney General prior to offering or selling franchises in the state. A franchisor must provide potential franchisees with a Franchise Disclosure Document (FDD), which contains key information about the franchisor such as the terms and conditions, pricing, ongoing fees, the length of the term, renewal options, restrictions on the franchisee, and the franchisor’s current financial condition. The FDD must also disclose any litigation or arbitration proceedings or any investigation by a governmental or regulatory agency that involves the franchisor or its affiliates, as well as the terms of a dispute resolution or arbitration provision. If a franchisee wishes to cancel the franchise agreement within seven days of signing it, they may do so and the franchisor is prohibited from charging any fees or other charges. In addition, franchisors are prohibited from making false, misleading, or deceptive statements about the franchise, and must not take any action that would unreasonably interfere with the franchisee’s operation of the franchise or its ability to earn an income. Franchisors are also responsible for providing all necessary training, support services, and materials as stated in the FDD, and must comply with any applicable state or federal laws.

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What are the regulations surrounding the sale of a franchise?

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