Franchise Acquisition Lawyer in Nevada

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Acquisition Stars advises buyers and sellers on franchise acquisition lawyer matters across Nevada.

Serving 2 markets across Nevada.

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Franchise Acquisition Lawyer Practice in Nevada

Acquisition Stars advises buyers and sellers on franchise acquisition lawyer matters across Nevada. Alex Lubyansky leads every engagement, and has been M&A counsel since 2013 across transactions of varying complexity, from lower-middle-market deals to multi-party structures.

Nevada Transaction Considerations

  • Nevada has no corporate or personal income tax, making it a preferred jurisdiction for structuring holding companies and acquisition entities
  • Nevada requires the consent of the other spouse to sell or encumber the assets or goodwill of a business both spouses help manage, under Nev. Rev. Stat. 123.230(6), and both spouses must join to convey community real property
  • Nevada Gaming Commission and Gaming Control Board approval is required for any change of control of gaming-licensed entities, with extensive background investigations of new owners

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Franchise Acquisition Lawyer Service Areas in Nevada

Acquisition Stars represents clients in each of the following markets. Click any city to learn about franchise acquisition law services in that area.

Nevada Legal Framework for Franchise Acquisition Law

Non-Compete Agreements

The seller's covenant and the franchisor's in-term and post-term covenants must both fit what the state will enforce.

Enforceable with restrictions for low-wage workers. Blue-pencil available.

Enforceable under NRS 613.195 if reasonable. Nevada courts blue-pencil overbroad restrictions. The statute requires that non-competes be supported by valuable consideration. In 2021, Nevada enacted restrictions (SB 47) prohibiting non-competes for hourly employees or employees paid at or below a specified compensation level. Non-competes arising from the sale of a business are given broader latitude.

Tax Considerations

Sales tax on transferred equipment and inventory, plus successor liability, shape the resale price allocation.

Nevada has no corporate income tax, no personal income tax, and no franchise tax. The state imposes a Commerce Tax (0.051%-0.331%) on gross revenue exceeding $4 million, varying by industry. As a community property state, Nevada requires the consent of the other spouse to sell or encumber the assets or goodwill of a business both spouses help manage, and both spouses must join to convey community real property, under Nev. Rev. Stat. 123.230(6). Nevada's favorable tax profile makes it attractive for entity structuring.

Filing Requirements

Franchise registration and relationship laws add a franchisor consent step and disclosure timing to the standard entity filings.

Entity mergers and conversions must be filed with the Nevada Secretary of State. Bulk sales compliance requires 45-day advance creditor notice. Annual lists (reports) are required with relatively high filing fees. Business licenses are required from the Nevada Secretary of State.

Bulk Sales / Asset Purchases

If the transaction transfers assets, check whether creditor-notice or tax-clearance rules in the state affect the closing date.

Nevada has repealed Article 6 (Bulk Transfers) of its Uniform Commercial Code, so no bulk sales notice to creditors is required. Buyers should address successor liability for unpaid Nevada taxes with the Department of Taxation and rely on contractual indemnities and escrows.

The federal framework for a franchise resale

  • Buying an existing franchised location is not the same transaction as buying an independent business. The buyer is stepping into a relationship the franchisor controls, so the purchase depends on the franchisor's consent to the transfer, not only on agreement between the buyer and the seller. The franchise agreement, not the purchase agreement, usually sets the conditions the transfer has to satisfy.
  • Whether the buyer has a federal right to current disclosure depends on the franchisor's role and any exemption. Where the franchisor signs the incoming owner to its current agreement with significant involvement, the rule can reach the transaction; where the buyer only takes assignment and the franchisor merely consents, it may not. The remaining term, and whether renewal survives the transfer, changes what the buyer pays for.
  • Franchisors commonly charge a transfer fee and require a general release from the seller as conditions of consent, protecting the franchisor from claims tied to the outgoing owner's tenure. A buyer's counsel reviews the transfer conditions in the franchise agreement early, because a franchisor's refusal to consent, or a demand the seller cannot meet, can stall or kill a deal that both sides have already priced.

Advance disclosure depends on the deal shape

For a franchise sale that is not exempt, the FTC Franchise Rule requires furnishing the current disclosure document at least 14 calendar days before the franchisee signs a binding agreement with, or makes any payment to, the franchisor or an affiliate, under 16 CFR 436.2(a). A payment to the selling franchisee, or a signed purchase agreement with the seller, does not by itself start that period. Two definitions can exclude a resale: a transfer by an existing franchisee is not a sale where the franchisor had no significant involvement with the buyer, and approval or disapproval alone is not significant involvement, under 16 CFR 436.1(t); a franchisee selling only its own outlet is not a franchise seller, under 16 CFR 436.1(j). Exemptions in 16 CFR 436.8 can also apply. Confirm which path applies before assuming a federal 14-day review right.

Sources: 16 CFR 436.2(a), 16 CFR 436.1(t), 16 CFR 436.1(j), 16 CFR 436.5, 16 CFR 436.8

Diligence focus for a franchise resale

  • Remaining term on the franchise agreement and renewal eligibility
  • Franchisor's consent conditions and any transfer fee
  • Training requirements the incoming owner must complete before opening
  • Scope of the general release the franchisor is requiring
  • Whether the current form of agreement differs from the seller's

Other M&A and Securities Services in Nevada

Acquisition Stars handles M&A transactions for Nevada clients and works with securities counsel on securities matters. Alex Lubyansky leads every M&A engagement.

Ready to Discuss Your Nevada Deal?

Alex Lubyansky leads every franchise acquisition law engagement, with an associate supporting the work.

M&A counsel since 2013. Nationwide practice. LOI through closing.

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We review every transaction inquiry within one business day.

Your information is kept strictly confidential and will never be shared. Privacy Policy