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Texas · Southwest

Franchising in Texas

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.

Map of Texas showing Houston, Dallas, Fort Worth, San Antonio, Austin and El Paso

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

Do you need to register a franchise in Texas?

No. 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.

Reviewed by the Fransion franchise research team · October 2026 · Sources listed below

Texas franchise law

A notice, not a registration

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

Filing fee Paid once to the Texas Secretary of State with Form 2703.

0

Renewals The notice does not expire. Address changes go on Form 2707, free.

14 days

FDD before signing The FTC Rule waiting period applies to every sale, in every state.

Order of steps before selling in Texas

01

Comply with the FTC Rule

Your attorney prepares the FDD and franchise agreement under 16 CFR Part 436.

02

File Form 2703

The exemption notice goes to the Secretary of State before any Texas offer, including ads.

03

Offer and sell

Deliver the FDD at least 14 calendar days before a candidate signs or pays.

Texas compared with a registration state

Texas compared with a registration state
Before you sellTexasRegistration state
State examiner reviews your FDDNoYes
Filing renews every yearNoYes
FTC Franchise Rule appliesYesYes
You may advertise before filingNoNo

Sources

General information, not legal advice. Your franchise attorney confirms what applies to your offering.

For Texas founders

Franchising a Texas business

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

Readiness review

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.

02

Franchise model and FDD

Fees, territories and support, then a franchise attorney prepares the FDD and franchise agreement.

03

Texas exemption notice

Form 2703 with the Secretary of State, $25, before any Texas offer. Your attorney usually files it with the FDD.

04

Operations manual and training

The system that makes your Texas results repeatable by someone who has never met you.

05

Brand, website and recruitment

Built in-house by Fransion: the franchise sales site, candidate funnel and local marketing for the first units.

Texas guides for founders

Selling beyond Texas

14 states require registration or a notice filing before you can offer franchises there. Plan them before you advertise nationally.

US map: franchise registration states shaded blue, Texas highlighted in navy
Navy: Texas · Blue: registration or notice state · Grey: no registration

Markets

Texas franchise markets

Texas has four major metros, Houston, Dallas–Fort Worth, San Antonio and Austin, with energy, technology, healthcare and fast-growing suburbs.

Plano and Frisco are covered in the nearby metro guides.

Franchise Directory

Restaurant franchises open in Texas

Brands actively awarding new Texas locations, with investment ranges and fees from each brand’s Franchise Disclosure Document.

Breakfast
Franchising since 2005
Breakfast, brunch and lunch, open daily from 6 a.m. to 2 p.m.
Total investment$822K – $1.14M
Fee
$45K
Royalty
5%
Units
105
  • Item 19 available
  • Multi-unit
Sandwiches
Franchising since 1995
Hearty steamed subs from a brand founded by firefighters.
Total investment$380K – $1.4M
Fee
$20K
Royalty
6%
Units
1,496
  • Item 19 available
  • Multi-unit
Pizza
Franchising since 1979
Italian-born recipes and fresh dough in a delivery-and-carryout pizzeria.
Total investment$286K – $811K
Fee
$25K
Royalty
5.5%
Units
1,238
  • Item 19 available
  • Multi-unit

FAQs

Franchising in Texas questions

Still have a question? Ask a specialist, free and confidential.

Do I need to register my franchise in Texas?

No. 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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