Alaska

Registration or Filing Required? No
Business Opportunity Laws? Yes

Alaska 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.

Does Alaska Have Business Opportunity Laws?
While Alaska does not have any franchise specific laws, it does have laws governing the sale of business opportunities promulgated through its Business Opportunity Act. Under the Act, sellers of business opportunities have to register with the Alaska Department of Law before they do business in the state. In order to register, sellers will have to post a bond, pay a registration fee ($300), and disclose information about the business opportunity and about the seller’s civil and criminal history. Sellers will also have to renew their registration every year and pay a renewal fee ($150). The Act also provides important safeguards for consumers, such as the following:

• Sellers must give a buyer a disclosure statement 10 days before selling a business opportunity. The disclosure must include information about the seller’s legal and financial background and the total price and payment schedule for the business opportunity.
• Sellers must use a written contract that sets out the payment terms, the services to be provided by the seller, delivery dates, and the buyer’s right to cancel.
• Sellers cannot accept more than 20% of payment up front, unless the additional amount is placed in an escrow account at a financial institution.
• Buyers can cancel the contract within 30 days of purchase for any reason by providing written notice to the seller. Buyers may cancel after this 30-day period if the seller failed to meet disclosure requirements, made deceptive statements about the business opportunity, or failed to provide services.

The Act also has several listed exemptions, one of which are franchises as defined under federal law. So, franchisors that are in compliance with the federal franchise rules are exempt from registering under Alaska’s Business Opportunity Act.

Fun Fact: What is the deadliest animal in Alaska? A bear? Good guess, but it is actually moose! Watch out for those guys (especially when you’re driving)!