Ohio 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 Ohio.
In addition, Ohio has business opportunity laws with registration requirements.
Ohio 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 Ohio.
However, a franchisor must have a current FTC compliant FDD to offer or sell franchises in Ohio and comply with the Franchise Rule disclosure timing provisions.
Ohio has Business Opportunity Laws, which define a “Business opportunity plan” means an agreement in which a purchaser obtains the right to offer, sell, or distribute goods or services under all of the following conditions:
(1) The goods or services are supplied by the seller, a third person with whom the purchaser is required or advised to do business by the seller, or an affiliated person.
(2) The purchaser is required to make an initial payment greater than five hundred dollars, but less than one hundred thousand dollars, to the seller or an affiliated person to begin or maintain the business opportunity plan. ORC Ann. 1334.01.
The sale of a business opportunity in Ohio requires registration with the state, including a copy of the written disclosure document, surety bond, and payment of a fee. ORC Ann. 1334.02, ORC Ann. 1334.04.
You can learn more about Ohio’s Business Opportunity requirements at this page:
If you offer a business opportunity in Ohio, we can help you determine if, and how, your company must comply with Ohio’s Business Opportunity Laws.
Want to learn more about our franchise services and franchising in Ohio? 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.