The Franchise Registration States are states that, in addition to the Federal Franchise Laws, have issued supplemental franchise laws and require franchisors to register their Franchise Disclosure Document (FDD) with a local state regulator before offering or selling a franchise within the state.
The Franchise Registration States Are:
- California
- Hawaii
- Illinois
- Indiana
- Maryland
- Michigan
- Minnesota
- New York
- North Dakota
- Rhode Island
- Virginia
- Washington
- Wisconsin
Additionally if, as a franchisor, your principal trademarks are not registered with the United States Patent and Trademark Office (USPTO), the following additional states also require FDD registration: Connecticut, North Carolina, South Carolina, and Maine. To learn more about each franchise registration state, the state regulator in charge, and the steps to follow to register your FDD, visit our interactive franchise registration map.
What Is Involved in FDD Registration?
FDD registration means that a designated state examiner has reviewed your FDD and franchise registration application and, upon review, has granted registration entitling you to offer and sell franchises within the state. The State regulators do not verify the accuracy of the disclosures contained in the FDD but review whether or not your FDD satisfies state regulatory requirements. State examiners will review your franchise company financial statements and may condition registration on satisfaction of financial assurance requirements. Learn more about the Steps to Registering Your FDD.
Franchise Filing States
In addition to the Franchise Registration states, certain states have enacted supplemental franchise or business opportunity laws that require franchisors to submit a franchise filing with the state. In most instances the filing is simply a notice with the state and unlike the Franchise Registration States, the franchise filing states do not examine and review the FDD. For franchisors with a federally registered trademark, the Franchise Filing States include: Connecticut, Florida, Kentucky, Nebraska, North Carolina, South Carolina, South Dakota, Texas, and Utah. For franchisors without federally registered trademarks Georgia and Louisiana also require filings.
Summary
Franchise registration is a supplement to the Federal Franchise Laws that require franchisors to properly issue a FDD and to disclose that FDD to prospective franchisees not less than 14 calendar days before the franchisee (i) may sign a franchise agreement, or (ii) pay any fees.