Perspective: Kirton McConkie Law Blog

Showing 1 post by Daniel H. Purdie.

Franchising across state lines: Do franchisors need to register when doing business in other states?

In addition to federal and state regulations covering franchise disclosure and registration documents, there is often a question of whether franchisors must also register to do business when they contract with franchisees in other states. A business is generally only required to register in the state where it is organized and any state where it is doing, conducting or transacting business. Since franchising is typically viewed as an interstate business activity, the vast majority of states do not require a franchisor to register to do business in a franchisee’s state. One exception is Maryland, which does require a “registration” for entities conducting interstate business, but, even there, the penalties for failing to register a business conducting wholly interstate commerce are minor. Read More