What Are The Franchise Registration States?

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 a franchisor's primary trademarks are not registered with the United States Patent and Trademark Office (USPTO), the following states also mandate FDD registration: Connecticut, North Carolina, South Carolina, and Maine. For more details on each registration state, its regulatory authority, and registration steps, refer to our interactive franchise registration map.

What Is Involved in FDD Registration?

Registering an FDD means a state examiner has reviewed the FDD and the franchise registration application, granting the franchisor permission to offer and sell franchises within that state. The state regulators do not verify the FDD's accuracy but check if it meets state regulations. Examiners will assess the franchisor’s financial statements and may require additional financial assurances before registration approval. Discover more about the FDD registration process.

Franchise Filing States

Alongside the Franchise Registration States, some states have enacted additional franchise or business opportunity laws, requiring franchisors to submit a franchise filing. Unlike the registration states, franchise filing states typically only require a notice and do not review the FDD. For franchisors with a federally registered trademark, the Franchise Filing States are Connecticut, Florida, Kentucky, Nebraska, North Carolina, South Carolina, South Dakota, Texas, and Utah. Georgia and Louisiana also require filings if the trademark is not federally registered.

Summary

Franchise registration supplements Federal Franchise Laws, requiring franchisors to properly issue an FDD and to disclose it to prospective franchisees at least 14 days before the franchisee can sign an agreement or pay any fees.