New Mexico is classified as a non-registration state, as there are no currently enacted 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 New Mexico. The only state law that could potentially affect franchisors in New Mexico is its “Franchise Termination Act,” which is codified at N.M. Stat. § 57-23-1 et seq. However, as provided in § 57-23-2, the Franchise Termination Act applies only to those franchise businesses dealing in farm, utility, and industrial tractors and implements.
Thus, with the exception of those in the line of business described in § 57-23-2, franchisors in New Mexico only need to comply with 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.