Louisiana

Registration or Filing Required: No*
Business Opportunity Laws? Yes

Louisiana 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. However, there are certain instances in which a franchisor may be required to register with the state. More information can be found on the Louisiana Secretary of State’s Website.

Do I Need to Register My Franchise in Louisiana?

Louisiana has enacted Business Opportunity Laws, that define a business opportunity as a sale of goods or services exceeding $300 where the goods or services enable the buyer to start a business, and the seller represents it will do one of the following:

1. Provide locations or assist buyer in finding locations for vending machines, racks or devices,
2. Buy any products made by the buyer using items sold by seller,
3. Guarantee buyer will derive income exceeding purchase price or seller will refund some/all money or buy back some/all products if buyer is not satisfied, or
4. Provide a sales or marketing plan to enable the buyer to derive income exceeding price paid, unless it is made in conjunction with license of a registered trademark

Most franchisors do not represent any of the first three factors, but virtually all represent that they will assist franchisees start and run their business by providing them some form of sales or marketing plan. Franchisors that fall into that category are exempt from business opportunity registration in Louisiana if they license a registered trademark as a part of their franchise sales. The trademark will qualify if its registered federally or with the state of Louisiana. Franchisors may rely on this exemption and are not required to file proof of their federal or state registered trademark with the Louisiana Secretary of State. Franchise offerings that meet one of the other three qualifications or aren’t made with a registered trademark, must continue to register with Louisiana.

I Don’t Have a Registered Trademark, So How Do I Register My Franchise in Louisiana?

If a business is required to register as a business opportunity in Louisiana, it must submit the required documents. Documents can be submitted by mail or fax, but the state encourages businesses to submit them through Louisiana’s online portal called geauxBIZ. The first document required is the Business Opportunity Consent form, which also includes a consent to service of process. Additionally, business opportunities are required to maintain a surety bond of $50,000, which they must also submit evidence of. The state also requires a $15 filing fee. In addition to requiring registration, the laws also prohibit business opportunity sellers from representing that the opportunity provides income or earning potential, unless it is based on actual earnings made by other purchasers of the business opportunity.

While not overly burdensome, registering a business opportunity is undoubtedly more work, and puts more stringent requirements on the seller. Therefore, relying on a trademark exemption is the recommended path for those who can do so. If you wish to register your trademark, our brilliant trademark attorneys would be more than happy to help you register your mark. See our Trademarks page for more information.

Fun Fact: Thanks to its low elevation and proximity to the ocean, Louisiana boasts the longest bridge over a body of water. The Lake Pontchartrain Causeway goes on for nearly 24 miles! It’s so long that it has its own website where drivers can check weather and traffic!