Do franchise regulations from the government help protect the franchise buyer this has been a big debate amongst franchising attorneys on both the Franchisor and the franchisee side of the law. Further, 13 states have instituted franchise regulations and required registration before a franchise or sells franchises to a resident in that state.

Other states have become notification states and there are also a few of those, which require Franchisor's to send in their disclosure documents or Uniform Franchise Offering Circulars UFOCs. But does all this government oversight really help the consumer? The federal government at the Federal Trade Commission also has rules, which govern those states which do not provide franchising rules of their own. They require that disclosure documents are given to each franchise buyer 10 days before purchase. Still, does all this protect the franchise buyer?

If you are considering changing your career and perhaps owning a small business of your own such as a franchise then in this is important information for you. If the franchising company is in another state and selling you a franchise in a different state, then the franchise regulations in this state where the Franchisor is will not help you. Because State franchise regulation agencies are in place to protect the consumers and residents of those states only.

If there is a problem down the road with your franchise business and you attempt to complain to the franchise registration Board in another state, you may be surprised that they are not interested in your complaint and may even forward your complaint to the Franchisor's legal department. Suffice it to say, if you are planning on buying a franchise business you need to be aware. You need to ask lots of questions and use due diligence. Please consider all this in 2006.