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Arizona
Franchise Registration

Arizona

Arizona 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 Arizona. 

In addition, Arizona has business opportunity laws with registration requirements.

Arizona Franchise Laws

Arizona 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 Arizona.

However, a franchisor must have a current FTC compliant FDD to offer or sell franchises in Arizona and comply with the Franchise Rule disclosure timing provisions.

Arizona Franchise Relationship and Termination Laws

There are no franchise laws that specifically govern the franchise relationship or termination of a franchisee in Arizona.

Arizona Business Opportunity Laws

Arizona’s Business Opportunity Laws define a  “Business opportunity” as:

(a) the sale or lease, or offer for sale or lease, of any goods or services to a consumer for an initial payment of five hundred dollars or greater for the purpose of enabling the consumer to start or operate a business, which sale or lease is not limited to sales initiated or made by the telephone.

(b) Includes a solicitation of consumers in which the seller represents one or more of the following:

(i) That the consumer may or will earn an amount in excess of the initial payment as a result of the purchase.

(ii) That a market exists for any goods to be made or sold or services to be rendered by the consumer.

(iii) That the seller will provide locations or assist the consumer in finding locations for the use or operation of vending machines, racks, display cases or other similar devices or currency-operated amusement machines or devices or any other devices.

(iv) That the seller may purchase from the consumer goods to be made or services to be rendered by the consumer.

(v) That the seller guarantees, either conditionally or unconditionally, that the consumer will derive income from the business opportunity or that the seller will refund all or part of the price paid for the business opportunity or repurchase any of the goods supplied by the seller if the consumer is unsatisfied with the business opportunity.

(vi) That the seller or an entity associated with the seller will provide a sales program or marketing program to the consumer unless the marketing program is offered in conjunction with the licensing of a registered trademark or service mark, if the trademark or service mark has been effectively registered under federal law. A.R.S. § 44-1271.

Arizona Business Opportunity Requirements

The sale of a business opportunity in Arizona requires registration with the state, including a copy of the written disclosure document, surety bond, and payment of a fee. A.R.S. § 44-1272, A.R.S. § 44-1274.

Arizona Franchise Exemption from Business Opportunity Laws

Arizona Business Opportunity Laws do not apply to a sales program or marketing program offered in conjunction with the licensing of a federally registered trademark. A.R.S. § 44-1271.

More Information about Arizona's Business Opportunity Laws

Business Opportunity Sales Act

Arizona's Business Opportunity Requirements

If you offer a business opportunity in Arizona, we can help you determine if, and how, your company must comply with Arizona’s Business Opportunity laws.    

Want to learn more about our franchise services and franchising in Arizona?  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.

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