Franchise Laws in South Dakota
South Dakota is classified as a franchise filing state, placing it in a middle ground between registration and non-registration jurisdictions. But, “middle-ground” doesn’t mean you don’t need to hire South Dakota Franchise Attorneys to help with franchising.
That means before a franchisor can offer or sell franchises within the state, they are required to submit a notice filing to the South Dakota Division of Securities. This annual filing must include a copy of the Franchise Disclosure Document (FDD) and a filing fee.
This process is less intensive than a full registration and review, but it is a mandatory administrative step that must be completed.
In addition to this state-level requirement, franchisors must also comply with the Federal Trade Commission (FTC) Franchise Rule, which mandates that the FDD be provided to a prospective franchisee at least 14 days prior to signing a franchise agreement or paying any fees.
For the post-sale relationship, South Dakota law offers significant statutory protections to franchisees.
The South Dakota Franchises for Brand-Name Goods and Services Act governs key aspects of the franchisor-franchisee dynamic, superseding contrary provisions in a franchise agreement. The law stipulates that a franchisor must have “good cause” to terminate a franchise.
Furthermore, it mandates specific notice procedures, typically requiring 60 days’ written notice of termination, which must outline the reasons for the action and provide the franchisee with a 30-day period to cure the specified default.
Finally, these relationship laws create a more regulated and secure environment for franchisees operating in the state.
Here is a list of franchise lawyers you can hire in South Dakota
Costello Porter Hill Heisterkamp Bushnell & Carpenter LLP
115 N. 7th Street, Suite 3
Spearfish, South Dakota
This Directory is owned and operated by Franchise Selection Specialists Inc., Cleveland, Ohio 44143
Joel Libava, President.
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