Alaska does not have franchise laws. However, a franchisor must still comply with the federal regulations established under the Federal Trade Commission (“FTC”) Franchise Rule when offering and selling franchises in the state of Alaska.
In addition, Alaska has business opportunity laws with registration requirements.
Alaska is not a franchise registration state and does not require any type of franchise filing or registration for a franchisor to offer or sell franchises in Alaska. However, many franchises qualify as Business Opportunities and therefore, must comply with Alaska’s Business Opportunity filing requirements.
However, a franchisor must have a current FTC compliant FDD to offer or sell franchises in Alaska and comply with the Franchise Rule disclosure timing provisions.
There are no franchise laws that specifically govern the franchise relationship or termination of a franchisee in Alaska.
Alaska’s Business Opportunity Laws define a “Business Opportunity” as an arrangement under which the buyer buys products, equipment, supplies, or services to start a business, for total payments of $250 or more (Alaska Stat. § 45.66.220), and where:
(A) the seller or a person recommended by the seller will provide or assist the buyer in finding locations for the use or operation of vending machines, racks, display cases, or other similar devices on premises that are not owned or leased by the buyer or seller;
(B) the seller or a person recommended by the seller will provide or assist the buyer in finding outlets or accounts for the buyer’s products or services;
(C) the seller or a person specified by the seller will purchase any or all products made, produced, fabricated, grown, bred, or modified by the buyer;
(D) the seller or a person specified by the seller will buy back or is likely to buy back any products made, produced, fabricated, grown, bred, or modified by the buyer using, in whole or in part, the product, supplies, equipment, or services that were initially sold or offered for sale to the buyer by the seller;
(E) the seller makes an oral or written representation that the buyer will derive income from the business that will exceed the price paid to the seller, and the representation would cause a reasonable person in the buyer’s position to believe the income is assured;
(F) the seller will refund all or part of the price paid to the seller or repurchase some or all of the products, equipment, or supplies provided by the seller or a person recommended by the seller if the buyer is dissatisfied with the business; or
(G) the seller will provide the buyer with a marketing plan. Alaska Stat. § 45.66.900.
The sale of a business opportunity in Alaska requires registration with the state, including a copy of the written disclosure document, surety bond, and payment of a fee. Alaska Stat. § 45.66.080.
Franchises are excluded from the Business Opportunity Laws. Alaska Stat. § 45.66.220.
If you offer a business opportunity in Alaska, we can help you determine if, and how, your company must comply with Alaska’s Business Opportunity laws.
Want to learn more about our franchise services and franchising in Alaska? Contact Us or call (757)-263-4596 to schedule a consultation. You can also visit our interactive map to learn more about other state franchise laws.