Franchise State Registration Requirements
There are three different types of states when it comes to franchise sales: registration states, filing states, and non-registration states. Below are summaries of each type of state and lists of states that follow those rules. Click on a particular state for that state's specific registration or filing requirements.
Thirteen states have their own franchise laws and require franchisors to register their franchise disclosure documents (FDDs) prior to selling within those states. There are certain exemptions in most registration states, but most franchisors will have to register their FDD with a state agency. There are severe consequences if franchisors do not follow these state rules! Some states actually review the FDD while others accept the FDD upon receipt. Each registration state requires an annual renewal as well, and the deadlines differ by state. Check out the individual states below for specific information for each state.
- New York
- North Dakota
- Rhode Island
Several states require franchisors to file FDDs with the state prior to selling franchises within those states. Filing is a lot simpler than registration as there is no formal review of the FDD in any filing states. Nevertheless, there are specific rules franchisors must follow to be able to sell their franchises in these states. Check out the state-by-state rules below.
- North Carolina
- South Carolina
- South Dakota
All of the other states have no state-specific franchise rules for the registration or filing of FDDs. As long as a franchisor is in compliance with the federal franchise rules, they may sell their franchise in these states without taking any additional legal steps.
- District of Columbia (Washington, D.C.)
- New Hampshire
- New Jersey
- New Mexico
- West Virginia