Texas · Southwest
Texas does not register franchise documents. It asks for a one-time $25 notice. The real work is the same as anywhere: a sound model, a compliant FDD and marketing that fills territories across four very different metros.
29.1 million
Texas residents, second only to California (2020 Census)
No FDD registration
Texas is an exemption notice state
$25, one time
Form 2703, filed before the first offer
6 metro guides
Houston, Dallas and Fort Worth and more
Quick answer
Reviewed by the Fransion franchise research team · October 2026 · Sources listed below
Texas franchise law
Texas regulates business opportunities under Chapter 51 of the Business & Commerce Code. Section 51.003(b)(8) excludes franchises that comply with the FTC Franchise Rule, as long as the franchisor files a notice first.
$25
0
14 days
01
Your attorney prepares the FDD and franchise agreement under 16 CFR Part 436.
02
The exemption notice goes to the Secretary of State before any Texas offer, including ads.
03
Deliver the FDD at least 14 calendar days before a candidate signs or pays.
| Before you sell | Texas | Registration state |
|---|---|---|
| State examiner reviews your FDD | No | Yes |
| Filing renews every year | No | Yes |
| FTC Franchise Rule applies | Yes | Yes |
| You may advertise before filing | No | No |
Sources
General information, not legal advice. Your franchise attorney confirms what applies to your offering.
For Texas founders
The state filing is the smallest step. Most of the work, and most of the cost, sits in the model, the FDD and the first year of franchise sales.
01
Unit economics, systems and a protectable brand. If one location does not make money on paper for an owner who pays royalties, it will not make money in Katy or El Paso either.
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Fees, territories and support, then a franchise attorney prepares the FDD and franchise agreement.
03
Form 2703 with the Secretary of State, $25, before any Texas offer. Your attorney usually files it with the FDD.
04
The system that makes your Texas results repeatable by someone who has never met you.
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Built in-house by Fransion: the franchise sales site, candidate funnel and local marketing for the first units.
14 states require registration or a notice filing before you can offer franchises there. Plan them before you advertise nationally.
Markets
Texas has four major metros, Houston, Dallas–Fort Worth, San Antonio and Austin, with energy, technology, healthcare and fast-growing suburbs.
Houston–The Woodlands–Sugar Land
Energy, the Texas Medical Center, the port and aerospace in a sprawling, highly diverse metro. Houston’s sprawl means drive-time territories usually work better than radius-based ones.
Houston market guide →
Dallas–Fort Worth–Arlington
Corporate relocations, finance, technology and logistics make DFW one of the most active franchise markets in the US. Nearby: Plano, Frisco, Irving, Richardson.
Dallas market guide →
Dallas–Fort Worth–Arlington
Aerospace, logistics and energy with rapid growth in northern and western suburbs. Nearby: Arlington, Keller, Southlake, Weatherford.
Fort Worth market guide →
San Antonio–New Braunfels
Military, healthcare, tourism and cybersecurity, with growth along the I-35 corridor toward Austin. Nearby: New Braunfels, Boerne, Schertz, Converse.
San Antonio market guide →
Austin–Round Rock–Georgetown
Technology, semiconductors, state government and the university fuel one of the fastest-growing US metros. Nearby: Round Rock, Cedar Park, Georgetown, Pflugerville.
Austin market guide →
El Paso
Cross-border trade, military (Fort Bliss) and healthcare in a bilingual market tied to Ciudad Juárez. Nearby: Socorro, Horizon City, Las Cruces.
El Paso market guide →
Plano and Frisco are covered in the nearby metro guides.
For franchise brands
A Houston unit and an Austin unit compete in different search results, for different customers. Each Texas location needs its own page on your franchise website, its own reviews and its own local campaigns, all under one brand.
Franchise website design →
One brand site with a location page for every Texas unit, and a franchise sales section for candidates.
Franchise SEO in Texas →
Local search for units in Houston, San Antonio and Dallas and beyond.
Franchise lead generation in Texas →
Recruiting franchisees across Texas within FTC and state advertising rules.
Reputation management →
Reviews and responses for each Texas location, under one brand standard.
Franchise Directory
Brands actively awarding new Texas locations, with investment ranges and fees from each brand’s Franchise Disclosure Document.
Breakfast
Sandwiches
PizzaNo. Texas excludes franchises from its Business Opportunity Act when the franchisor follows the FTC Franchise Rule. You file a one-time exemption notice with the Texas Secretary of State before you offer or sell, pay $25, and never renew it.
Before your first offer or sale in Texas. Advertising the opportunity to Texas residents can count as an offer, so file before your franchise sales website or recruitment ads go live. The notice has no expiration and is not renewed. If your principal business address changes, notify the Secretary of State with Form 2707, which has no fee.
No. The Texas franchise tax is a state business tax collected by the Texas Comptroller of Public Accounts from most LLCs, corporations and partnerships doing business in Texas, whatever their business model. It has nothing to do with selling franchises or the exemption notice. Your franchisor entity and each franchisee entity may owe it separately.
The FTC Franchise Rule, not Texas, sets this. Item 21 of the FDD requires audited financial statements, with a phase-in that lets a new franchisor start with unaudited statements. Texas adds no separate financial review.
Yes, but 14 states, including California, Hawaii and Illinois, require registration or a notice filing before you offer franchises to their residents or for locations there. Plan those filings before you advertise nationally.
It depends on your customer and your real estate costs. Houston, Dallas–Fort Worth, San Antonio and Austin hold most of the population, and fast-growing suburbs such as Frisco, Katy and Round Rock often support new units before the urban cores do. Territory mapping answers the question with data for your concept.
Fransion works remotely with franchise brands nationwide, including Texas. Strategy, design and marketing are done by our own team. FDD preparation and filings are handled by franchise attorneys, and franchise development work is delivered with our partner FMS Franchise.
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