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Franchisors considering establishing local operations must meet specific legal and financial requirements. These ensure your company’s compliance with all applicable state and federal regulations relating to the sale and establishment of business opportunities for franchisees.
Because franchise business models vary, it is beneficial to seek support from an experienced attorney who understands franchise requirements in Georgia. Here at Franchise.Law, we could review your proposal and produce a customized plan to help you set up a legally compliant franchising company. Our lawyers could explain the legal requirements and prepare a plan to help make your future operation seamless and stress-free.
While Georgia has no official franchise law and does not require franchisors to register their businesses, it has other ways to regulate franchise activity. In particular, the state’s business opportunity laws require you to meet specific legal and financial standards.
This includes providing the franchisee with the Franchise Disclosure Document (FDD) at least two weeks before the sale date.
This law applies if the franchise does not have a federally recognized trademark. Compliance with the Business Opportunity Act under Official Code of Georgia Annotated § 10-1-411 includes maintaining an authorized resident agent in the state, posting a $75,000 surety bond, and accepting only 15 percent of the sale value before the deal closes, allowing the franchisee 60 days to pay the balance.
You may be able to claim exemption from the state’s more restrictive obligations if you hold a federally recognized trademark.
These options may be possible if you are operating without a federally registered trademark. Obtaining a state trademark removes the requirement to register as a business opportunity.
Under Official Code of Georgia Annotated § 10‑1‑390, it is prohibited to engage in deceptive and unfair operational acts in the industry.
Our experienced attorneys could explain the specific legal guidelines you need to meet to establish your franchise business in Georgia.
In addition to providing the FDD, you must prepare operational documents that aid your franchisees in starting their new businesses. These documents help establish the franchise as a legally compliant and well-structured entity.
Properly prepared documentation also enables a franchisee to launch their operation without worrying about potential legal issues. This documentation includes:
Our knowledgeable legal team could help draft and prepare all the necessary documentation to ensure that your franchise complies with Georgia’s regulations.
At Franchise.Law, our experienced attorneys could help you with drafting franchise documents and related legal administration to enable smooth business and operational activities. Based in North Carolina, we represent franchisors across the country, with a focus on federal franchise law and multi-state compliance.
While we do not have a license to practice Georgia law, we operate under multi-jurisdictional practice rules, including those that permit representation in matters governed primarily by federal law, such as franchise regulation. Contact us today for advice on legal and operational franchise requirements in Georgia, as well as document preparation customized to your franchising needs.