A franchise is an authorization or license given to a franchisee to access a franchiser’s operations, products, branding, and knowledge in exchange for a franchise fee or a percentage of sales or royalty fees.
A franchiser is a ‘parent’ business that grants a business owner permission to run a franchise. A franchiser registers a trade name in North Dakota.
A franchisee is a business owner who wants to run a franchise and has permission from the franchiser to do so. An individual or organization that is a franchisee does not usually gain ownership of the franchise name and cannot register the business trade name in North Dakota.
Franchise Name
A franchise name is a name to which an independent operator has secured the rights from a franchiser or licensor to use and distribute products or services, techniques, and trademarks for a percentage of sales or royalty fees. Franchise agreements often convey additional support services, advertising, and training from the franchiser or licensor.
A franchisee must file a Franchise Name Disclosure with the Office of the Secretary of State before using the franchise name in North Dakota. The filing of the disclosure information does not extend any trade name protection provided by NDCC ch. 47-25.
For assistance with franchise business requirements and registration, please contact our Business Services unit.
Disclaimer: Content provided on this website is for informational purposes and not intended as advice. Consultation with legal, tax, and/or business professionals is recommended to ensure appropriate consideration of the implications of your decisions.