state Franchise Registrations
expert Guidance in franchise development and Registration
Learn more about the franchise registration to legally offer and sell franchises within registration and filing states.
Expert Franchise Planning and Compliance
Although franchise development goes well beyond the mandated Franchise Disclosure Document (FDD) and Operations Manual suite documents, effective franchise documents are pivotal for franchise compliance, operational consistency, optimal franchise expansion and long-term sales success.
Brainchild Brands' seasoned franchise consultants and strategic attorney partners possess the expertise to craft a comprehensive Franchise Disclosure Documents (FDD), Franchise Agreements, Operations Manuals, and related documents to diligently cover every aspect of your business to protect your organization and boost franchise growth.
Understanding Franchise State Registration
There are three primary franchise state registration types: Franchise Registration States, Franchise Filing States, and Franchise Non-Registration States. Each comes with specific rules and regulations that franchisors must navigate.
Registration States
Filing States
Non-registration States
For those entering the franchise sector, franchise registration might appear rather complex. However, with guidance from seasoned franchise development experts and proper legal counsel, this process can be streamlined and made far more straightforward.
Many states often have varying requirements and annual registration mandates. For example, agencies within Franchise Registration States meticulously review the Franchise Disclosure Document (FDD) to ensure compliance with state regulations. They may request clarifications or revisions before granting approval. Mishandling this process can be time-consuming and exhausting.
All franchises must complete the franchise registration process to legally offer and sell franchises in franchise registration and filing states. While the state regulators do not validate the FDD's disclosures, they assess its compliance with their state regulations. Moreover, these examiners scrutinize the franchise's financial statements, franchise website and in some cases franchise marketing, and may make registration contingent on meeting financial assurance criteria.
Many states often have varying requirements and annual registration mandates. For example, agencies within Franchise Registration States meticulously review the Franchise Disclosure Document (FDD) to ensure compliance with state regulations. They may request clarifications or revisions before granting approval. Mishandling this process can be time-consuming and exhausting.
All franchises must complete the franchise registration process to legally offer and sell franchises in franchise registration and filing states. While the state regulators do not validate the FDD's disclosures, they assess its compliance with their state regulations. Moreover, these examiners scrutinize the franchise's financial statements, franchise website and in some cases franchise marketing, and may make registration contingent on meeting financial assurance criteria.
Franchise Registration States
The Federal Trade Commission (FTC) requires franchisors to provide a Franchise Disclosure Document (FDD) to prospective franchisees before offering or selling a franchise. In certain states, the FDD must also be registered and applicable fees paid before a franchise may be offered or sold within that state.
During the registration process, state examiners review the FDD for compliance with state franchise laws and may request revisions before granting registration approval. Registration confirms disclosure compliance and does not represent approval or endorsement of the franchise investment.
CALIFORNIADepartment of Financial Protection and Innovation (DFPI)$675 Initial/Expired Registration$450 Renewal$50 Amended/Modified Registration
ILLINOISFranchise DivisionOffice of Attorney General$500 Initial/Expired Registration $100 Renewal $100 Amendment Fee MARYLANDFranchise Office Division of Securities$500 Initial/Expired Registration$250 Renewal$100 Amended Registration
NEW YORKFranchise & Securities DivisionState Department of Law$750 Initial/Expired Registration $150 Renewal$150 Amended Registration
RHODE ISLANDDivision of Securities, Franchise Office$600 Initial/Expired Registration$300 Renewal$120 Amended Registration
VIRGINIAFranchise Office StateCorporation Commission$500 Initial/Expired Registration$250 Renewal$100 Amended Registration
WISCONSINFranchise Office WisconsinSecurities Commission$400 Initial/Expired Registration$400 Renewal $200 Amended Registration
ILLINOISFranchise DivisionOffice of Attorney General$500 Initial/Expired Registration $100 Renewal $100 Amendment Fee MARYLANDFranchise Office Division of Securities$500 Initial/Expired Registration$250 Renewal$100 Amended Registration
NEW YORKFranchise & Securities DivisionState Department of Law$750 Initial/Expired Registration $150 Renewal$150 Amended Registration
RHODE ISLANDDivision of Securities, Franchise Office$600 Initial/Expired Registration$300 Renewal$120 Amended Registration
VIRGINIAFranchise Office StateCorporation Commission$500 Initial/Expired Registration$250 Renewal$100 Amended Registration
WISCONSINFranchise Office WisconsinSecurities Commission$400 Initial/Expired Registration$400 Renewal $200 Amended Registration
HAWAIIFranchise & Securities Division$250 Initial/Expired Registration$250 Amended Registration
$250 Renewal
INDIANAFranchise Division Secretary of State$250 Initial/Expired Registration$250 Renewal $0 Amendment Fee (Single Unit within 24 Months Exception) MICHIGANDepartment of the Attorney GeneralConsumer Protection, Division Franchise Unit $250 Initial/Expired Registration$250 Renewal$0 Amended Registration MINNESOTADepartment of Commerce – Franchise Division $400 Initial/Expired Registration$200 Renewal$100 Amended Registration
NORTH DAKOTAOffice of the Securities Commissioner $250 Initial/Expired Registration$100 Renewal$50 Amended Registration
SOUTH DAKOTADivision of Securities$250 Initial/Expired Registration$150 Renewal$0 Amended Registration
WASHINGTONDepartment of Financial Institutions, Securities Division$600 Initial/Expired Registration$100 Annual Report Filing $100 Amended Registration
INDIANAFranchise Division Secretary of State$250 Initial/Expired Registration$250 Renewal $0 Amendment Fee (Single Unit within 24 Months Exception) MICHIGANDepartment of the Attorney GeneralConsumer Protection, Division Franchise Unit $250 Initial/Expired Registration$250 Renewal$0 Amended Registration MINNESOTADepartment of Commerce – Franchise Division $400 Initial/Expired Registration$200 Renewal$100 Amended Registration
NORTH DAKOTAOffice of the Securities Commissioner $250 Initial/Expired Registration$100 Renewal$50 Amended Registration
SOUTH DAKOTADivision of Securities$250 Initial/Expired Registration$150 Renewal$0 Amended Registration
WASHINGTONDepartment of Financial Institutions, Securities Division$600 Initial/Expired Registration$100 Annual Report Filing $100 Amended Registration
Franchise Notice and Filing States
The following states do not require franchise registration or review but require a notice filing or exemption filing prior to offering franchises. Once the FDD is filed and fees are paid, the franchise is free to offer and sell franchises within the state.
CONNECTICUT
Connecticut Department of Banking$400 Initial/Expired Registration$100 Renewal$0 Amended Registration
FLORIDA - FRANCHISE EXEMPTION FILINGFlorida Department of Agriculture and Consumer Services
$100 Initial/Expired Registration$100 Renewal$0 Amended Registration
KENTUCKY FRANCHISE FILING
$0 Initial/Expired Registration$0 Renewal$0 Amended Registration
MAINE
Maine Department of Professional & Financial Regulation
Office of Securities$25 Initial/Expired Registration$10 Renewal$0 Amended Registration
NEBRASKA - EXEMPTION FILINGDepartment of Banking and Finance$100 Initial/Expired Registration$0 Renewal$0 Amended Registration
NORTH CAROLINA
North Carolina Secretary of State$250 Initial/Expired Registration$250 Renewal$0 Amended Registration
SOUTH CAROLINA - EXEMPTION FILING Secretary of State$100 Initial/Expired Registration$0 Renewal$100 Amended Registration TEXAS - EXEMPTION FILING Secretary of State $25 One-Time Initial Fee$0 Renewal$0 Amended Registration UTAH - EXEMPTION FILINGState of Utah $100 Initial/Expired Registration$100 Renewal$0 Amended Registration
SOUTH CAROLINA - EXEMPTION FILING Secretary of State$100 Initial/Expired Registration$0 Renewal$100 Amended Registration TEXAS - EXEMPTION FILING Secretary of State $25 One-Time Initial Fee$0 Renewal$0 Amended Registration UTAH - EXEMPTION FILINGState of Utah $100 Initial/Expired Registration$100 Renewal$0 Amended Registration
Franchise Non-Registration States
All remaining states are non-registration states and rely primarily on the Federal Trade Commission Franchise Rule, which requires franchisors to provide a Franchise Disclosure Document (FDD) to prospective franchisees before offering or selling a franchise. Once the FDD is prepared and compliant with the FTC rule, franchisors may offer and sell franchises in those states without state registration.
ALABAMA
ALASKAARIZONAARKANSASCOLORADODELAWAREGEORGIAIDAHOIOWAKANSAS
LOUISIANAMASSACHUSETTSMISSISSIPPI
MISSOURI
MONTANANEVADANEW HAMPSHIRENEW JERSEYNEW MEXICOOKLAHOMAOREGONPENNSYLVANIATENNESSEEVERMONTWEST VIRGINIAWYOMING