Louisiana
Franchise Registration
Louisiana
Louisiana 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 Louisiana.
Louisiana Franchise Laws
Louisiana 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 Louisiana.
However, a franchisor must have a current FTC compliant FDD to offer or sell franchises in Louisiana and comply with the Franchise Rule disclosure timing provisions.
Louisiana Franchise Relationships and Termination Laws
Louisiana does not have any franchise laws that specifically govern the franchise relationship or termination of a franchisee.
Louisiana Business Opportunity Laws
“Business opportunity” means the sale or lease for an initial required consideration exceeding three hundred dollars of any goods or services which are transferred to a purchaser for the purpose of enabling the purchaser to start a business, and in which the seller or agent:
- Represents that the seller or an entity to which it will refer the purchaser, will provide or assist the purchaser in finding business locations on premises neither owned nor leased by the purchaser or seller for the use or operation of vending machines, racks, display cases, currency-operated amusement machines, or other similar devices; or
- Represents that the seller, or any entity to which it will refer the purchaser, will purchase any or all products to be sold, made, produced, fabricated, assembled, grown, bred, or modified by the purchaser using in whole or in part the supplies, services, or goods sold to the purchaser by the seller; or
- Guarantees that the purchaser is to derive income from the business opportunity which exceeds the price paid for the business opportunity, or that the seller is to refund all or part of the price paid for the business opportunity, or repurchase any of the products, equipment, supplies, or goods supplied by the seller, if the purchaser is unsatisfied with the business opportunity; or
- Represents that for a fee exceeding three hundred dollars the seller will provide a sales plan or marketing program which will enable the purchaser to derive income from the business opportunity which exceeds the price paid for the business opportunity. This provision shall not apply to the sale or lease of a sales plan or marketing program made in conjunction with the licensing of a registered trademark or service mark.
LA Rev Stat § 51:1821 (2023).
Louisiana Business Opportunity Requirements
To sell business opportunities in Louisiana, a seller or their agent must obtain a surety bond in amount determined by statute and complying with statutory requirements and must file the bond with the state before doing any business in the state. LA Rev Stat § 51:1822 (2023).
Louisiana Franchise Exemption from Business Opportunity Laws
Franchises are excluded from the Business Opportunity Laws if they have a registered trademark or service mark. LA Rev Stat § 51:1821 (1)(d) (2023).
More information about Louisiana's Business Opportunity Laws
You can access Louisiana’s Business Opportunity Laws by clicking here.
If you offer a business opportunity in Louisiana, we can help you determine if, and how, your company must comply with Louisiana’s Business Opportunity Laws.
Want to learn more about our franchise services and franchising in Louisiana? 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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