North Dakota franchise laws, like many other states, has specific laws governing franchises within its jurisdiction.
Here are some key points regarding franchise laws in North Dakota:
1. Franchise Registration: North Dakota does not have specific requirements for the registration of franchises or the filing of Franchise Disclosure Documents (FDDs) with state authorities before offering or selling franchises in the state.
2. FDD Requirements: While there’s no state-specific registration requirement, franchisors must still comply with the Federal Trade Commission’s (FTC) Franchise Rule, which mandates providing an FDD to potential franchisees. The FDD contains detailed information about the franchise, including financial statements, fees, obligations, territory rights, and other essential details. Franchisors are typically required to provide the FDD to potential franchisees at least 14 days before any agreement is signed or any payment is made.
3. Franchise Relationship Law: North Dakota does not have specific statutes governing franchise relationships, but common law principles of contract law, good faith, and fair dealing generally apply to franchisor-franchisee relationships.
4. Termination and Non-Renewal: Franchisees in North Dakota may have protections under common law regarding termination or non-renewal of their franchise agreement. The specifics of these protections might vary based on the terms outlined in the franchise agreement and established legal precedents.
5. Remedies and Enforcement: In the absence of specific franchise statutes, violations or disputes related to franchises in North Dakota might be addressed based on contract law, business torts, or other applicable legal principles. Remedies and enforcement actions could involve seeking damages, injunctive relief, or other appropriate legal remedies through the court system.
While North Dakota might not have specific franchise registration requirements, understanding federal regulations and common law principles that apply to franchise relationships is essential for both franchisors and franchisees operating within the state. Seeking legal guidance from professionals knowledgeable about franchise laws and business practices is advisable for parties involved in a franchise agreement in North Dakota.
North Dakota Franchise Division
Office of Securities Commission
600 East Boulevard – 5th Floor
Bismarck, ND 58505
Phone: (701) 328-4712, ND or Toll Free: (800) 297-5124