Alabama is somewhat of an anomaly. While there have been recent proposals in the Alabama Legislature to further regulate the sale of franchises within the state, there are no currently enacted laws or regulations that require franchisors to register their franchise offerings with the state. There are also no business opportunity exemption registration requirements or state franchise disclosure or relationship laws.
Thus, franchisors in Alabama need not separately file or register their Franchise Disclosure Document with the state. However, as in every state, franchisors selling in Alabama are required to provide a franchise disclosure document compliant with the FTC Amended Franchise Rule to prospects in Alabama prior to entering into a franchise agreement or accepting any payments from those prospects.