Franchisors must complete and file a Business Opportunity Exemption Notice (Texas Form 2703) with the Texas Secretary of State and pay a one-time filing fee of $25 prior to offering or selling a franchise in Texas. Many franchisors want to avoid any costly mistakes, so they request help from an accomplished franchise attorney to make certain they adhere to Texas franchise law and filing requirements.
Texas defines a business opportunity with certain exceptions, which includes franchises as long as the franchisor complies with 16. C.F.R. Part 436 et seq., and other Federal Trade Commission orders or actions relating to franchises.
Unlike several states, Texas does not require that a complete copy of the Franchise Disclosure Document be filed with the state. Franchisors are only required to submit a $25 filing fee and a Texas Business Opportunity Exemption Notice. Once completed, the Business Opportunity Exemption Notice must be sent to:
Secretary of State
PO Box 13193
Austin, TX 78711
Unlike some other filing states, Texas does not require that a franchisor renew its exemption annually; however if a franchisor’s address changes then an update must be filed with the state at no additional charge.
If you are unsure if your franchise has an exemption on file with Texas, you can search the Business Opportunity database by clicking HERE.
To make certain that filing requirements are accurately met, several franchisors find it helpful to work with an experienced franchise attorney familiar with Texas franchise filing requirements. Call Franchise.Law today to start franchising your business.