What Are The Franchise Laws in Kansas?
Kansas is a non-registration state and does not have a specific franchise act. This means that a franchisor doesn’t have to register its Franchise Disclosure Document (FDD) or file it with any state authority before offering or selling a franchise.
That said, the main requirement for franchisors in Kansas is to comply with the Federal Trade Commission’s (FTC) Franchise Rule, which is a federal regulation. This nationwide rule requires the franchisor to provide a prospective franchisee with a complete FDD at least 14 days before any agreement is signed or money is exchanged.
Because Kansas lacks a state-specific law that governs the franchisor-franchisee relationship, there are no state-level regulations concerning issues like termination or non-renewal. This differs from states with strong relationship laws that dictate how and when a franchisor can end a franchise agreement.
Note: The one exception is for certain specific industries, such as motor vehicle dealerships, where state laws do offer some protections.
The absence of state-specific franchise laws in Kansas puts the responsibility on prospective franchisees to be exceptionally thorough during their due diligence. That’s because they do not have the added state-level protections that franchisees in several other states might have.
For this reason, it is highly recommended that a prospective franchisee in Kansas consult with an experienced Kansas Franchise Attorney and accountant to carefully review the FDD and the franchise agreement before making a significant investment.
Here is a list of franchise lawyers you can hire in Kansas
Trent R. Byquist
1551 N. Waterfront Parkway, Suite 100
Wichita, Kansas
Foulston Siefkin LLP
7500 College Blvd, Suite 1400
Overland Park, KS 66210
