Classification: Non-registration state

Registration Fee: n/a

Renewal Fee: n/a

Registration expiration: n/a

Delaware is classified as a non-registration state. There are no Delaware laws requiring a franchisor to register its Franchise Disclosure Document (FDD) with the state; to notify the state that it intends to offer or sell franchises in the state; or to register its FDD with the state as an exemption from laws pertaining to business opportunities (because there are no business opportunity laws in Delaware). The only Delaware law that concerns franchisors is the Delaware Franchise Security Law, Del. Code. tit. 6, § 2551 et seq., which comes into play only when a franchisor unjustly terminates or fails to renew an agreement with a franchisee.

Thus, franchisors in Delaware only need to comply with the requirements of the Federal Trade Commission Amended Franchise Rule, 16 C.F.R. §§ 436.1 et seq., which, among other things, requires Delaware franchisors to disclose to a validly issued FDD prior to entering into a franchise agreement or accepting any payments from a Delaware franchisee.

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