Arizona

Registration or Filing Required? No
Business Opportunity Laws? Yes

Arizona 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 Arizona Have Business Opportunity Laws?

While Arizona does not have any franchise specific laws (except for those related to Petroleum and Beer), it does have business opportunity laws promulgated through its Business Opportunity Act, that requires among other things, for the sellers of business opportunities to provide potential buyers with specific disclosures. The Act defines a business opportunity as:

1. The sale or lease of any goods or services, for an initial payment of $500 or more, enabling the buyer to start or operate a business, and
2. Includes solicitation of buyer where the seller represents one of the following:
   a. That the buyer will derive income exceeding the purchase price;
   b. That a market exists for any of the goods made or sold or services rendered;
   c. That the seller will provide or assist buyer in finding locations for vending machines, racks, display cases, or devices;
   d. That the seller will or is likely to buy back some or all of the products made by buyer;
   e. That the seller guarantees that the consumer will derive income from the business opportunity or that the seller will refund all or part of the price paid for the business opportunity or repurchase any of the goods supplied by the seller if the consumer is unsatisfied with the business opportunity; or
   f. That the seller will provide a marketing plan for the buyer.

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 Arizona’s Business Opportunity Act. More information on registration can be found on the Arizona Secretary of State Website.

How Do I Register My Business Opportunity in Arizona?

If your business opportunity does not qualify for the franchise exemption or any other exemption, then you must complete the Telephonic Seller Registration with the Arizona Secretary of State (note that despite the name this applies to all business opportunities, not just telephone solicitors). Business opportunities must submit the correct registration form (full, limited or exempt) to the Secretary of State who will process it in 5 days and issue a one-year registration. Those submitting for full registration must also pay the $500 registration fee. Applications can be mailed to Secretary of State, Attn: Telephonic Sellers Dept. at 1700 W. Washington Street, Fl. 7, Phoenix, AZ 85007.

Fun Fact: The bridge spanning a channel of the Colorado River in Lake Havasu City is named the London Bridge. As a rational adult you ask, why? Because in 1968 Roger P. McCulloch BOUGHT the bridge from the City of London and had stone from the original bridge spanning the River Thames brought to Arizona to help construct the new bridge. WILD!