FRANCHISING IN NORTH DAKOTA
Registration or Filing Required?
Yes (Registration)
Business Opportunity Laws?
Yes
North Dakota is a franchise registration state. You must register your FDD with the North Dakota Securities Department prior to offering or selling franchises in the state. North Dakota charges a $250 fee for the initial registration application and a $100 fee for renewal applications, which must be done annually.
North Dakota’s Franchise Investment Law defines a franchise as a contract or agreement, in which:
- A franchisee is given the right to offer, sell or distribute goods or services under a marketing plan or system prescribed by the franchisor;
- The operation of the franchisee’s business is associated with the franchisor’s trademark or other commercial symbol; and
- The franchisee is required to pay a franchise fee.
Franchisors that offer or sell franchises in North Dakota or to a North Dakota resident must register with the Securities Department. Even if the offer or acceptance is not made in the state, franchisors still need to register if the franchisee is a resident of North Dakota, and the franchised business will be located in North Dakota.
Franchisors must submit their registration documents through the NASAA Electronic Filing Depository. After submitting your application, the typical turnaround time on approving franchise registration in North Dakota is 1 to 2 months. Registrations expire one year after their registration date, and renewal applications must be submitted 15 business days prior to the expiration of your current registration. If you do not submit your renewal application on time, you may be forced to complete a new initial registration application.
North Dakota requires franchisors to promptly file an amendment disclosing any material changes made to their FDD. In order to amend an application, you must submit an amendment reflecting the material changes and a $50 filing fee.