Empowering Your Business Through Expert Franchise Development
Franchise Registration
In 1979, the Federal Trade Commission (FTC) enacted the “Franchise Rule”. The Franchise Rule, as amended, requires a franchisors’ franchise disclosure document (FDD) provide prospective purchasers with adequate disclosure to make an informed decision before entering into a franchise agreement.
In addition to the federal requirement regulated by the FTC, most states have their own unique laws to govern franchises (or business opportunities) operating in their state. A number of “registration states” have enacted franchise disclosure laws, imposing state-specific disclosure requirements that supersede the FTC’s Franchise Rule requirements.
The franchise registration states are states that, in addition to the Franchise Rule, have issued supplemental franchise laws that require franchisors to register their FDD with the state’s examiner and pay a fee, and be effectively registered in the state before offering or selling a franchise within the state. Each registration state's website can be accessed by selecting the state.
The franchise registration states are:
Franchise Filing States
Filing states require franchisors to submit their FDD with the state, and pay a fee. In most instances the filing is simply a notice with the state and unlike the franchise registration states, the franchise filing states typically do not examine and review the FDD. The franchise filing states are:
Connecticut
Florida
Kentucky
Nebraska
North Carolina
South Carolina
South Dakota
Texas
Utah
Franchise Non-Registration States
Franchise non-registration states require FTC disclosure compliance (the “ FDD”), a federally registered trademark, presentation of a notice filing and a fee payment before you can begin offering to sell your franchise business within the state. The franchise non-registration states are:
Alabama
Alaska
Arizona
Arkansas
Colorado
Delaware
District of Columbia
Georgia
Iowa
Kansas
Louisiana
Massachusetts
Mississippi
Missouri
Montana
Nevada
New Hampshire
New Jersey
New Mexico
Ohio
Oklahoma
Oregon
Pennsylvania
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