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How to Start a Franchise in North Carolina

It is the dream of many business owners to turn their business into a franchise, and others wish to start one, but the process of where to begin can be confusing. Below we’ve compiled some of the most common questions when it comes to franchises to help you find the information you need to make your goals a reality.

What is an FDD?


An FDD is a Franchise Disclosure Document. It is a legal document that is presented to prospective buyers of a franchise in the pre-sale disclosure process that contains information that potential franchisees need in order to make a significant investment.

The address where you can send your FDD to be filed can be found below:

North Carolina Secretary of State
2 South Salisbury Street
Raleigh, North Carolina 27601

What Should Be Included in a Franchise Filing?

There are several items you will need to include in your franchise filing in order for it to be properly considered:

  • A cover letter of addressed to the North Carolina Secretary of State
  • Confirmation that the franchise offering does not trigger the posting of a bond
  • Consent to service of process
  • Two copies of the Franchise Disclosure Agreement
  • A check in the amount of $250 payable to “Secretary of State”

What Happens if I Don’t File an FDD?

If you fail to file an FDD before offering and selling franchises, you will be in violation of North Carolina’s Business Opportunity Laws, and your offerings will not stand.

What Are Business Opportunity Laws?

These are laws that regulate and govern the sale of business opportunities that involve the purchase of inventory, equipment, customer accounts, and other business assets.

North Carolina business opportunity laws state that franchisors are required to annually file their FDD with the North Carolina Secretary of State before issuing a notice validating franchising offerings as business opportunities.

Contact our North Carolina Franchise Team Today

It is our goal to make starting and purchasing franchises as easy and effortless as possible. We tailor all of our services to your specific needs to help you complete all aspects from franchise registration all the way down to franchisee recruitment.

If you are looking to start a franchise and are looking for a place to start, don’t hesitate to get in touch with us today through our website or give us a call at (704) 703-2910 for a free consultation!