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Understanding Franchise Law in Alabama
Thinking about opening a franchise in Alabama?
The good news is that Alabama has fewer rules than some other states.
Unlike places such as California or New York, Alabama franchise law doesn’t require franchisors to register or file special paperwork with the state before selling a franchise. This makes the process a little simpler for business owners.
That doesn’t mean there are no rules regarding franchising at all. Every franchisor in Alabama still has to follow the Federal Trade Commission’s (FTC) Franchise Rule. This law says that before you sign an agreement or pay any money, you have to receive a detailed Franchise Disclosure Document (FDD). The FDD explains the costs, responsibilities, and history of the franchise so you can make an informed decision.
Alabama also relies on general laws such as the Deceptive Trade Practices Act, which protects people from fraud or false promises, and common contract law that applies to any business deal.
For franchisees, this means you need to pay close attention to your contract. Since Alabama does not have extra state protections, your agreement sets the ground rules. If you’re careful, do your homework, and ask the right questions, franchising in Alabama can be a smart path forward.
Alabama Franchising Attorneys
Richard C. Duell III
Duell | Law
2151 Highland Avenue South, Suite 210, Birmingham, AL 35205
Adam K. Woelke
2101 West Clinton Avenue, Suite 102
Huntsville, Alabama
