By Alex Lubyansky Managing Partner Last updated
Acquisition Stars advises buyers and sellers on franchise acquisition lawyer matters across Nevada.
Serving 2 markets across Nevada.
Request Engagement AssessmentAcquisition 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.
Share the basics. Alex reviews every inquiry and responds within one business day.
Your transaction details are under review. If there is alignment, we will be in touch.
Meanwhile, feel free to call us directly at (248) 266-2790
Acquisition Stars represents clients in each of the following markets. Click any city to learn about franchise acquisition law services in that area.
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.
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.
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.
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.
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
Acquisition Stars handles M&A transactions for Nevada clients and works with securities counsel on securities matters. Alex Lubyansky leads every M&A engagement.
Alex Lubyansky leads every franchise acquisition law engagement, with an associate supporting the work.
M&A counsel since 2013. Nationwide practice. LOI through closing.
We review every transaction inquiry within one business day.
Your transaction details are under review. If there is alignment, we will be in touch.
Meanwhile, feel free to call us directly at (248) 266-2790
Before you go
Talk through your transaction with Alex Lubyansky at no cost. Submit your transaction details and the team will confirm next steps.
Request Your Free ConsultationOr call (248) 266-2790