Nevada is classified as a non-registration state, as it has no laws requiring franchisors to register with the state as a franchise or business opportunity, or to provide disclosures to franchisees beyond what is already required by the Federal Trade Commission Amended Franchise Rule, 16 C.F.R. §§ 436.1 et seq. (the “FTC Rule”), before offering or selling a franchise in Nevada. Nor does Nevada have any laws governing the franchise relationship.
Thus, franchisors in Nevada only need to comply with the requirements of the FTC Rule, which, among other things, requires franchisors to disclose a validly issued Franchise Disclosure Document (FDD) before entering into a franchise agreement or accepting payment from a franchisee.