As a franchisee, your first step toward business formation in Florida is to comply with the state's business laws. This includes both local and federal laws. As a franchisor, it is your responsibility to make sure that you're complying with all Florida state business laws.
Full Answer
How do I register a franchise in Florida?
Franchise Registration in Florida. There is no state franchise registration required in Florida. Business Opportunity Exemption Registration in Florida. The Florida Sale of Business Opportunities Act includes an exemption for franchises meeting the federal definition of a franchise under the FTC Franchise Rule.
Does Florida have a franchise law?
Florida has not enacted franchise specific laws and is not a franchise registration state.
How do I own my own franchise?
How to buy a franchise, step by stepBe sure about your reasoning. ... Research which franchises you may want to own. ... Begin the application process. ... Set up your “discovery day” meeting. ... Apply for financing. ... Review and return your franchise paperwork very carefully. ... Buy or rent a location. ... Get training and support.
Is it hard to get approved for a franchise?
Getting approved for franchise financing can be difficult, particularly if you need startup funds, you need funding but have bad credit, or your franchise has been open for less than a year.
Is it better to franchise or license?
A license arrangement is generally easier and cheaper to set up than a franchise concept. Ongoing management is also less demanding. However, you are giving up a lot of control over the quality of the products and services the licensee will provide, and this could damage your reputation.
Can an individual own a franchise?
Sole Proprietorship: If you choose not to form an entity to operate the Franchise Business, then you will be considered a sole proprietorship (if the franchise is owned by a single individual). A sole proprietorship exists when a single individual operates a business and owns all of the assets.
How do I start my first franchise?
Steps to Start a FranchiseStep 1: Research your options. ... Step 2: Select a franchise that aligns with your business goals. ... Step 3: Create an LLC or a corporation. ... Step 4: Arrange financing. ... Step 5: Talk to the franchisors and franchisees. ... Step 6: Talk to members of your community. ... Step 7: Create a business plan.More items...•
Is it worth to own a franchise?
If you're a fledgling entrepreneur or a seasoned business person wanting to diversify your holdings, you've probably wondered, “Are franchises a good investment?” The simple answer is yes, especially if a great opportunity presents itself. There is an obvious appeal to starting a business via buying a franchise.
How do franchise owners get paid?
How do franchise owners get paid? Franchise owners can pay themselves a salary or depending on their business entity, they may be able to take a draw from their accumulated equity.
What is the downside to a franchise?
The franchise agreement usually includes restrictions on how you can run the business. You might not be able to make changes to suit your local market. You may find that after some time, ongoing franchisor monitoring becomes intrusive. The franchisor might go out of business.
What are three qualifications to own a franchise?
Some franchise requirements to take into consideration may include:Credit score. Minimum credit scores vary by franchisor, but most consider a grade of 680 or higher as ideal.Net worth. ... Available cash. ... Previous industry experience. ... Management experience. ... Total investment required. ... Ongoing costs. ... Training and support.
What happens if you buy a franchise and it fails?
Often the best answer to a franchise that is not succeeding is for the franchisee to sell the business to a third party who becomes the new franchisee for that territory. This allows the failing franchisee to terminate its obligations under the franchise agreement and under any lease.
Is Florida a franchise state?
The answer is yes. Franchisors are required to file a new Franchise Exemption every year and pay a $100 filing fee. Florida does allow for electronic renewals; however, franchisors will need to upload a new, physically signed, Franchise Exemption in order to renew.
Is Florida a registration state for franchising?
Sellers of business franchises are no longer required to file registration documents with the Florida Department of Agriculture and Consumer Services (FDACS).
Which states regulate franchises?
For franchisors with a federally registered trademark, the Franchise Filing States include: Connecticut, Florida, Kentucky, Nebraska, North Carolina, South Carolina, South Dakota, Texas, and Utah. For franchisors without federally registered trademarks Georgia and Louisiana also require filings.
What are the laws that apply to franchising?
There are no special laws governing franchise agreements, which are governed by the general law on contracts. For a contract to be valid, there must be consent, consideration and a valid object. However, to be enforceable, a franchise agreement must: Be written.
How much does it cost to franchise a business in Florida?
Franchisors must complete and file an annual Franchise Exemption, with the Florida Department of Agriculture & Consumer Services and pay a $100 filing fee before offering or selling a franchise that is located within Florida or is being sold to a resident of Florida. Many franchisors seek assistance from a competent and experienced franchise attorney to ensure they comply with Florida franchise law and filing requirements.
What must be filed with the State of Florida to qualify for the Franchise Exemption?
When submitting a Florida Franchise Exemption, franchisors must complete the required Franchise Exemption form and send it with the required $100 filing fee to:
Does Florida have a franchise exemption?
Florida’s exemption applies to anyone offering a “franchise” within the state as long as the franchise is in compliance with the Federal Trade Commission orders or actions relating to franchises.
Does Florida allow electronic renewals?
Florida does allow for electronic renewals; however, franchisors will need to upload a new, physically signed, Franchise Exemption in order to renew.
How to contact Florida Franchise Exemption?
Need Assistance with your Filing your Florida Franchise Exemption? Give us a call at (718) 979-8688 or fill out a contact form to learn more.
What is the exemption for franchises in Florida?
To qualify for an exemption from the Florida Sale of Business Opportunities Act, your franchise offering must meet and satisfy Federal FTC rules and regulations governing the offer and sale of franchises. Among other things, this means that, you must maintain and properly disclose a current and properly issued Franchise Disclosure Document (FDD).
What is an acknowledgment signed by an officer of your franchise company?
An acknowledgment signed by an officer of your franchise company that your franchise offering complies with FTC guidelines as to the definition of a franchise and that your offering complies with the Federal Franchise Rule.
What is the Florida Department of Agriculture and Consumer Services?
The Florida Department of Agriculture & Consumer Services regulates and oversees the enforcement of Florida’s Business Opportunity Law which requires franchisors to file for an annual notice of exemption. When you file an annual Notice of Exemption you are certifying that your franchise offering complies with the Federal Franchise Rule.
Where to file a franchise exemption in Florida?
You must file your Franchise Exemption Application with the Florida Department of Agriculture & Consumer Services. You must include a filing fee in the amount of $100 by check payable to “FDACS.” Your application and filing fee must be mailed to:
How long does it take to get a Florida exemption?
As long as your application is complete and you have included the proper information, generally you will receive a response within a week. Once submitted, your application will be assigned to a regulatory specialist. Upon review and approval of your application, you will receive a notice advising you that you have been granted an exemption under Section 559.802 of the Florida Statutes. The notice will advise you of the effective date of your exemption and the expiration date.
Is Florida a franchise state?
Florida has not enacted franchise specific laws and is not a franchise registration state. However, Florida has enacted the Sale of Business Opportunities Act which is a business opportunity law that applies to the sale of franchises and requires franchisors to file an annual Franchise Exemption Notice with the Florida Department ...
