Classification: Non-registration state

Registration Fee: n/a

Renewal Fee: n/a

Registration expiration: n/a

Tennessee is classified as a non-registration state because it has no laws requiring franchisors to register with the state as a franchise or business opportunity before offering or selling their franchise. The only state laws that could potentially affect franchisors in Tennessee are set forth in its Tennessee Consumer Protection Act of 1977, which is codified at Tenn. Code §§ 47-18-101 et seq., and which regulates only limited aspects of the franchise relationship, such as prohibiting unfair and deceptive trade practices, and termination or non-renewal of a franchise agreement without good cause.

Thus, before offering or selling a franchise in Tennessee, franchisors 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 disclosure of a validly issued Franchise Disclosure Document (FDD) prior to entering into a franchise agreement or accepting payments from a franchisee.

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