Delaware
Franchise Registration
Delaware
Delaware does not have franchise or business opportunity 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 Delaware.
Delaware Franchise Law
Delaware defines a franchise as “a contract or other arrangement governing the business relationship within this State between a franchised distributor and a franchisor where the franchised distributor is required to pay more than $100 to enter into such contract or other arrangement.” 6 Del. C. § 2551.
Delaware Franchise Registration Filing
Delaware is a non-registration state, which does not require any type of franchise filing or registration for a franchisor to offer or sell franchises in Delaware.
A franchisor must have a current FTC compliant FDD to offer or sell franchises in Delaware and comply with the Franchise Rule disclosure timing provisions.
Delaware Franchise Relationship and Termination Law
Delaware’s Prohibited Trade Practices laws prohibit franchisors from terminating or failing to renew a franchise without good cause. Del. Code Ann. tit. 6, § 2552. In addition, except in certain situations, franchisors must give franchisees 90 days’ notice prior to termination. Del. Code Ann. tit. 6, § 2555.
Want to learn more about our franchise services and franchising in Delaware? 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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