I am starting a company and I want to offer franchises for sale. How
do I go about doing that?
Oregon law prohibits a franchisor from offering or selling franchises
in Oregon unless the franchisor delivers to prospective franchisees the disclosure statement
required by the Federal Trade Commission Trade Regulation Rule set forth in 16 CFR 436
("Franchise Disclosure Document").
The franchisor must deliver the disclosure statement and all proposed
agreements relating to the sale of the franchise to the prospective franchisee at least
14 calendar days before the prospective franchisee executes any agreement relating to the
sale of the franchise or at least 14 calendar days before the prospective franchisee pays
or is required to pay to the franchisor any consideration for the franchise including refundable
deposits, whichever occurs first.
I want a list of all the XYZ Company franchises, where they are located,
and who owns each XYZ Company franchise. Can you fax that to me?
Businesses operating in Oregon are required to register corporations and
assumed business names with the Business Registry section of the Corporation Division,
Oregon Secretary of State. Those records also include the name of the registered agent.
You can contact the Business Registry office at (503) 986-2200. Records can also be checked
online at http://www.filinginoregon.com.
I'm a lawyer from another state, and I've been reviewing your statutes
governing franchises in Oregon. Does Oregon have administrative rules regulating franchises
If a franchisor doesn't have to register in Oregon, what does a franchisor
have to do to sell franchises in Oregon?
In addition to providing full disclosure to prospective franchisees, Oregon
law also requires the franchisor to maintain a complete set of books, records and accounts
of the sale and disposition of proceeds of sales of franchises. See ORS
In reviewing my companys files, I've found copies of Franchise
Disclosure Document (FDD) filed with other states, but I can't find the one we filed with
the State of Oregon. Where can I get a copy of the last FDD our company filed with your
Oregon law does not require the filing of any disclosure statement, including
an FDD, with the state regulator. Therefore, the Oregon Division of Finance and Corporate
Securities does not accept and does not maintain franchise records pertaining to specific
businesses. Oregon law requires the franchisor to maintain a complete set of books, records,
and accounts of the sale and disposition of proceeds of sales of franchises. See ORS
You might wish to contact a state that does register franchises to learn
whether that state has information relevant to your inquiry. Both the states of California
and Washington register franchises and may have information about a specific franchise.
California Department of Corporations
1515 K Street, Suite 200
Sacramento, CA 95814-4052
(866) 275-2677 or 866 ASK CORP www.corp.ca.gov/SRD/franchise.asp
Washington Department of Financial Institutions
PO Box 41200
Olympia WA 98504-1200
FAX (360) 902-0524 www.dfi.wa.gov/sd/franchise.htm
Is the XYZ Company store located in my town a franchise?
Oregon law does not require the filing of franchise information with the
State's Department of Consumer and Business Services. Therefore, the Oregon Division of
Finance and Corporate Securities does not maintain records with information about specific
The franchisor is making demands that are not part of the deal or hasn't
held up his end of the deal. What can I do about it?
Because Oregon law regulates the disclosure of information from a franchisor
to a franchisee prior to a sale, the Division of Finance and Corporate Securities will
investigate allegations that a particular franchisor made a materially untruthful statement
and/or failed to disclose a material fact in the disclosure document. Other complaints
regarding the franchise agreement are considered matters of contractual interpretation
and are not within the jurisdiction of this agency.
If you have purchased a franchise and believe that the franchisor has
breached the agreement, you should consult an attorney familiar with franchises and business
contracts. If you need assistance in locating an attorney, contact the Oregon State Bar
Lawyer Referral Service at (503) 684-3763 (Portland area) or toll-free (800) 452-7636.
Oregon Law does provide a private right of action or civil remedy for
franchisees who have a claim against a franchisor. See ORS
What is the difference between franchise regulation and franchise registration?
Oregon regulates the sale of franchises by requiring franchisors to provide
certain disclosures to prospective franchisees before any sale. Other states regulate franchises
by requiring franchisors to file franchise documents with the state regulator that must
be approved prior to the sale of the franchise in that state.
Where can I find a sample FDD that has been filed with your agency?
Oregon law does not require nor accept the filing of any disclosure statement,
including a FDD, with the Department of Consumer and Business Services.
Who is the authorized agent of the XYZ Company franchise?
For authorized agent information for businesses registered in the state
of Oregon, contact the Business Registry office at (503) 986-2200 or go to http://www.filinginoregon.com.