What Are The Franchise Laws in Louisiana?
In Louisiana, franchise regulation operates without a state-specific registration or disclosure law, instead relying on federal rules.
That said, all franchisors who wish to sell franchises in Louisiana must comply with the Federal Trade Commission’s (FTC) Franchise Rule, which mandates providing a Franchise Disclosure Document (FDD) to prospective buyers before a sale. This ensures a baseline of transparency for potential investors. The state does not add any further disclosure requirements on top of this federal foundation.
With those things in mind, it behooves you to find Louisiana Franchise Attorneys who can help you navigate the laws and go over the FDD.
Now, while Louisiana is not a franchise registration state, its Business Opportunity Law can affect some franchise offerings.
For example, A franchise may be considered a business opportunity if the initial investment is over $300 and the franchisor provides a marketing plan.
However, a critical exemption exists for franchisors that license a trademark registered with the U.S. Patent and Trademark Office or the state of Louisiana, which covers most established franchise systems. Those not qualifying for this exemption must register as a business opportunity with the Secretary of State and secure a surety bond.
Furthermore, the ongoing relationship between a franchisor and franchisee is primarily dictated by the franchise agreement and general contract law.
That being said, Louisiana does not have a comprehensive set of laws governing franchise termination, renewal, or transfers, making the contract’s terms especially important.
However, state law does impose specific limitations, notably on non-compete agreements, which are restricted to a maximum of two years after the franchise relationship ends and must define the specific geographic territory they cover.
Here is a list of franchise lawyers you can hire in Louisiana
James A. “Jim” Brown / Sher Garner Cahill Richter Klein & Hilbert, L.L.C.
909 Poydras Street, 28th Floor
New Orleans, Louisiana
Patrick Ragan Richard
Phelps Dunbar LLP
II City Plaza, 400 Convention Street, Suite 1100
Baton Rouge, Louisiana
Amanda Butler Schley / Business Law Group
1100 Poydras St, Ste 2900
New Orleans, Louisiana
