State Franchise Registration Status and Franchise Laws


Registration or Filing Required? No
Business Opportunity Laws? No

Alabama is not a franchise registration state nor a franchise filing state, so you may offer or sell your franchise without registering or filing your Franchise Disclosure Document (“FDD”) with the state, provided that you are compliant with the Federal Franchise Rule.

While Alabama does not have specific laws governing the sale of business opportunities, it does have laws regulating unlawful trade practices. These laws do not have any restriction in scope and would therefore apply to franchise sale transactions. Among other things, the law prohibits any seller that is a part of a seller-assisted marketing plan from:

  • Misrepresenting the amount or extent of earnings a buyer will gain from the transaction.
  • Misrepresenting the extent or nature of the good or services involved.
  • Falsely claiming that the seller will buy back or repurchase any of the goods or services provided through the transaction.
  • Misrepresenting the timeframe in which the goods or services will be delivered.

Fun Fact: Did you know that Alabama is the only state to have an alcoholic beverage as it’s official drink? You bet, it’s Conecuh Ridge Whiskey! Nothing like a little southern whiskey to bring in the tourists!