Franchise Laws in South Carolina
South Carolina is a non-registration state concerning franchise-specific laws, meaning franchisors are not required to file or register their Franchise Disclosure Document (FDD) with a state franchise administrator. Still, I always suggest hiring South Carolina Franchise Attorneys to help you navigate the laws. And more.
Anyway, the primary regulation for the pre-sale disclosure process is the Federal Trade Commission (FTC) Franchise Rule, which requires franchisors to provide the FDD to prospective buyers at least 14 days before a sale is finalized or any money is exchanged.
However, South Carolina has a Business Opportunity Sales Act that does impact franchisors.
Experience shows that many franchise offerings can qualify for an exemption from the more burdensome requirements of this Act.
But, to be exempt, a franchisor must file a formal notice of exemption and a consent to service of process with the South Carolina Secretary of State and pay an annual filing fee. This makes South Carolina a “notice filing” state under its business opportunity law, placing a state-level administrative step on franchisors that is not present in pure non-registration states.
Regarding the post-sale relationship, South Carolina does not have a dedicated franchise relationship law that governs key aspects such as termination, non-renewal, or the transfer of a franchise.
Translation: The rights and obligations of both the franchisor and the franchisee in these situations are dictated by the specific terms and conditions written into the franchise agreement.
Consequently, any disputes related to the conclusion or continuation of the franchise relationship are resolved based on general principles of contract law within the state.
Here is a list of franchise lawyers you can hire in South Carolina
Emily Bohan / Kim, Lahey & Killough Law Firm
3620 Pelham Road, PMB #213
Greenville, South Carolina
