South Carolina
Franchise Registration
South Carolina
South Carolina 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 South Carolina.
In addition, South Carolina has business opportunity laws with registration requirements.
South Carolina Franchise Laws
South Carolina 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 South Carolina. However, many franchises qualify as Business Opportunities and, therefore, must comply with South Carolina’s Business Opportunity filing requirements.
In addition, a franchisor must have a current FTC compliant FDD to offer or sell franchises in South Carolina and comply with the Franchise Rule disclosure timing provisions.
South Carolina Franchise Relationships and Termination Laws
There are no franchise laws that specifically govern the franchise relationship or termination of a franchisee in South Carolina.
South Carolina Business Opportunity Laws
Georgia’s Business Opportunity Laws define a “Business opportunity” as the sale or lease of or offer to sell or lease, any products, equipment, supplies, or services for the purpose of enabling the purchaser to start a business and in which the seller or company represents:
(A) the seller or company will provide locations or assist the purchaser 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. For purposes of this subparagraph, “assist the purchaser in finding locations” includes but is not limited to supplying the purchaser with names of locator companies, contracting with the purchaser to provide assistance or supply names, or collecting a fee on behalf of or for a locator company;
(B) the seller or company will purchase any or all products made, produced, fabricated, grown, bred, or modified by the purchaser using, in whole or in part, the supplies, services, or chattels sold to the purchaser; or
(C) the company, in conjunction with any agreement which requires a total initial payment of an amount exceeding $500.00, will provide a sales program or marketing program; provided, however, that this subparagraph shall not apply to the sale of a sales program or a marketing program made in conjunction with the licensing of a registered trademark or service mark. (O.C.G.A. § 10-1-410).
South Carolina Business Opportunity Requirements
The offer or sale of a business opportunity in Georgia requires filing a Consent to Service with the state. Further, an appropriate business opportunity disclosure statement and a bond may be required. (O.C.G.A. § 10-1-412).
South Carolina Franchise Exemption from Business Opportunity Laws
Franchises are excluded from the Business Opportunity Laws if they have a state or federally registered trademark or service mark. (O.C.G.A. § 10-1-410).
More information about South Carolina's Business Opportunity Laws
You can learn more about South Carolina’s Business Opportunity requirements at this page:
Business Opportunity and Registration Guidelines
Understanding Business Opportunity Investments
Registered Business Opportunities, Trademarks, or Services
If you offer a business opportunity in South Carolina, we can help you determine if, and how, your company must comply with South Carolina’s Business Opportunity Laws.
If you would like to learn more about our franchise services and franchise compliance in South Carolina, contact us or call (757) 263-4596 to schedule a consultation. You can also visit our interactive map to explore franchise laws in other states.
Client Recommendations
