On the Franchise Laws in Nevada
Nevada is a “non-registration” state. That means it has no overarching state laws dedicated to either franchise registration or the ongoing franchisor-franchisee relationship. That said, you still need to hire a Nevada Franchise Attorney. Let’s continue.
The process of selling a franchise is regulated exclusively at the federal level by the Federal Trade Commission’s (FTC) Franchise Rule. This requires franchisors to provide a prospective buyer with a Franchise Disclosure Document (FDD) but does not require them to file any documents with the state of Nevada.
Crucially, Nevada lacks a general franchise relationship law.
Unlike states with specific franchisee protections, matters such as contract termination, renewal, and transfer rights are not governed by a state statute. Therefore, the terms of the franchise agreement itself become the primary and most critical document defining the rights and obligations of both parties.
Furthermore, while general business format franchisees must rely on the contract and common law principles like breach of contract, Nevada does provide specific statutory protections for certain industries.
For example, there are laws that grant specific rights concerning termination and compensation to motor vehicle dealers and petroleum retailers. For franchises outside of these protected industries, however, the negotiated agreement is paramount.
Here is a list of franchise lawyers you can hire in Nevada
Matthew J. Kreutzer
Howard and Howard Attorneys PLLC, 3800 Howard Hughes Pkwy, Ste 1000
Las Vegas, Nevada
