Franchise Advertising: Don’t Get Caught on the Wrong Side of the Law

With the economy slowly improving, it is crucial for franchisors to attract new franchisees. Franchisors are looking for new methods to reach their franchisees, as broker referrals, word of mouth, and simply having a website are no longer sufficient. However, franchise advertising must follow the laws for the jurisdiction in which it is appearing. This can be tricky.

Register before Advertising

Before any franchise can be sold in a particular province or state, most franchisors know that they must register their franchise in that particular area. But, did you know that these laws also apply to offering a franchise? This means that until the franchise has been registered for sale in a particular province, no advertisement can be directed to any of the franchise registration provinces, since franchise advertising is considered an offer.

Franchise advertising laws apply to franchise brochures, form letters sent to targeted groups, traditional print advertising placed in various media, and any other materials directed at prospective franchisees. Anything that is meant to convince prospects to acquire your franchise or to attract prospects to your brand is considered an ad and is subject to state franchise advertising laws.

Exceptions to the Rule

Of course, there are a couple ways around these laws. Advertising in national publications is one of them. An advertisement is not deemed to be an offer in a particular province or state if more than two thirds of the circulation is outside of the particular regulatory jurisdiction and the publication does not originate from that jurisdiction. This, of course, would not apply to brochures or letters. This is solely for media advertising.

The other workaround is franchise advertising on the Internet. A franchisor does not have to register in a particular state to advertise on the World Wide Web, since it is available in every state. There is one caveat. The franchisor must clearly indicate the provinces and states where they are not registered for sale, and until registration is achieved, they will not sell franchises in those areas.

What This Means

The above is just the tip of the iceberg when it comes to franchise advertising regulations. Though it is important as a franchisor to do your due diligence and know the law, you can “cover your butt” so to speak and ensure you are in compliance by hiring a marketing firm. ClickTecs digital marketing agency is not only well-versed on the various laws governing advertising, they are also skilled at leveraging the Web to increase quality leads and opportunities for expanding your reach.

ClickTecs employs a team of expert content creators who write original and engaging articles, blogs, and press releases that garner high rankings on search results and drive traffic to your website. Plus, the very shareable content will naturally make your company look good.

Your website is the best way for you to branch out in new areas, and digital marketing help from ClickTecs will help you do that.