Expand across state lines without hiccups or holdups.
Scaling your franchise into new states and territories is a monumental milestone, but one that can be filled with nuance. Though each new state represents your growing business, it also presents its own unique set of requirements and laws. In particular, franchise registration states require franchisors to register their Franchise Disclosure Document (FDD) with the state before franchises can be offered or sold. These states include: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, Virginia, Washington, and Wisconsin.
Most of the states that require their own registration embark on a process of filing, reviewing, and approving your FDD as a measure of ensuring your franchise complies with all state and federal laws. As your franchising partner, FranSource will walk you through the procedures, requirements, and timelines for franchise registration states so your expansion continues without delay.
Outline of State Franchise Disclosure and Registration Laws
No franchise registration law is enacted. No franchise registration is required.
No business opportunity registration law is enacted. No business opportunity registration is required.
No franchise registration law is enacted. No franchise registration is required.
Business opportunity registration law is enacted. No business opportunity registration is required.
No franchise registration law is enacted. No franchise registration is required.
No business opportunity registration law is enacted. No business opportunity registration is required.
No franchise registration law is enacted. No franchise registration is required.
No business opportunity registration law is enacted. No business opportunity registration is required.
Franchise registration law is enacted. Registration is required, with a recommended filing time of 90 days. The registration fee is $675. The registration requirements include filing a Franchise Disclosure Document (FDD) with California Addenda and related documents. Related documents consist of:
- Uniform Franchise Registration Application
- Franchisor’s Costs and Sources of Funds
- Uniform Consent to Service of Process
- Franchise Seller Disclosure Form
- Guarantee of Performance (if required)
- Consent of Accountants
- Authorization of Disclosure of Financial Records
- Notice of Exemption for Interstate Advertisements (if you have a web site)
- Advertising or promotional materials directed to prospective franchisees
These documents must also be included as PDFs on a CD-ROM. Future advertising materials must be filed 3 days before use.
Business opportunity law is enacted. Contracts for Seller-Assisted Marketing Plan Act provides an exemption for franchisors who are effectively registered under the franchise registration law.
No franchise registration law is enacted. No franchise registration is required.
No business opportunity registration law is enacted. No business opportunity registration is required.
No franchise registration law is enacted. No franchise registration is required. Must file a copy of the federal trademark registration and license agreement, if the trademark is owned by third party.
Business opportunity law is enacted. Business opportunity law provides exemption from registration for franchisors that have a federally registered trademark. If you do not have a federally registered trademark, you must file your FDD with the state along with Connecticut’s CT BOIA-1 Application to Register a Business Opportunity Investment. The filing fee is $400.
No franchise registration law is enacted. No franchise registration is required.
No business opportunity registration law is enacted. No business opportunity registration is required.
No franchise registration law is enacted. No franchise registration is required.
No business opportunity registration law is enacted. No business opportunity registration is required.
No franchise registration law is enacted. No franchise registration is required.
Business opportunity law is enacted. Business opportunity law provides exemption for franchisors who have a federally or state registered trademark. A safe-harbor exemption for franchisors is obtained by filing a Notice of Exemption and payment of a $100 fee.
No franchise registration law is enacted. No franchise registration is required.
Business opportunity law is enacted. Business opportunity law provides exemption for franchisors who have a federally or state registered trademark.
Franchise registration law is enacted. Registration is required, with a recommended filing time of 30 business days. The registration fee is $50. The registration requirements include filing:
- Uniform Franchise Registration Application for Hawaii
- Uniform Consent to Service of Process for Hawaii
- Franchise Disclosure Document (FDD) and Exhibits including Hawaii specific addenda
No business opportunity registration law is enacted. No business opportunity registration is required.
No franchise registration law is enacted. No franchise registration is required.
No business opportunity registration law is enacted. No business opportunity registration is required.
Franchise registration law is enacted. Registration is required, with a recommended filing time of 90 days. The registration fee is $500. The registration requirements include filing the Franchise Disclosure Document (FDD) with Illinois Addenda and related documents. Related documents consist of:
- Uniform Franchise Registration Application
- Franchisor’s Costs and Sources of Funds
- Uniform Consent to Service of Process
- Franchise Seller Disclosure Form
- Guarantee of Performance (if required)
- Consent of Accountants
These documents must also be included as PDFs on a CD-ROM.
Business opportunity law is enacted. Franchisors who register under the Illinois Franchise Act do not also have to register under the Illinois Business Opportunity Act.
Notification state. Must file Notice of Intent, Uniform Consent to Service of Process and copy of FDD. Filing fee is $500.
Business opportunity law is enacted. Business opportunity law provides exemption for franchisors.
No franchise registration law is enacted. No franchise registration is required.
Business opportunity law is enacted. Business opportunity law provides an exemption to franchisors that are in compliance with the FTC Rule.
No franchise registration law is enacted. No franchise registration is required.
No business opportunity registration law is enacted. No business opportunity registration is required.
No franchise registration law is enacted. No franchise registration is required.
Business opportunity law is enacted. Business opportunity law provides exemption for franchisors that are in compliance with the FTC Franchise Rule and for which a Notice of Exemption Affidavit and copy of FDD has been filed. There is no registration filing fee.
No franchise registration law is enacted. No franchise registration is required.
Business opportunity law is enacted. Business opportunity law provides exemption for franchisors having a federally or state registered trademark.
No franchise registration law is enacted. No franchise registration is required.
Business opportunity law is enacted. Business opportunity law provides exemption for franchisors having a federally registered trademark. If you do not have a federally registered trademark, you must file your FDD with the state. You are required to obtain a $30,000 surety bond or escrow account. The filing fee is $25.
Franchise registration law is enacted. Registration is required, with a recommended filing time of 90 days. The registration fee is $500. The registration requirements include filing a Franchise Disclosure Document (FDD) and Maryland Addenda and related documents. Related documents consist of:
- Uniform Franchise Registration Application
- Franchisor’s Costs and Sources of Funds
- Uniform Consent to Service of Process
- Franchise Seller Disclosure Form
- Guarantee of Performance (if required)
- Consent of Accountants
- Advertising or promotional materials directed to prospective franchisees
These documents must also be included as PDFs on a CD-ROM.
Business opportunity law is enacted. Business opportunity law provides exemption for effectively registered franchisors.
No franchise registration law is enacted. No franchise registration is required.
No business opportunity registration law is enacted. No business opportunity registration is required.
Franchise registration law is enacted. Registration of an annual Notice of Franchise Offering, with a recommended filing time of 10 business days. The registration fee is $250. A state specific cover page must be prepared and included in all Michigan FDDs.
Business opportunity law is enacted. Business opportunity law does not apply to franchisors who meet the franchise laws definition of a franchise.
Franchise registration law is enacted. Registration is required, with a recommended filing time of 90 days. The registration fee is $400. The registration requirements include filing a Franchise Disclosure Document (FDD) and Minnesota Addenda and related documents. Related documents consist of:
- Uniform Franchise Registration Application
- Franchisor’s Costs and Sources of Funds
- Uniform Consent to Service of Process
- Franchise Seller Disclosure Form
- Guarantee of Performance (if required)
- Consent of Accountants
- Advertising or promotional materials directed to prospective franchisees
These documents must also be included as PDFs on a CD-ROM. Advertising materials must be filed 5 days before use.
No separate business opportunity law is enacted. Business opportunities are included in the definition of a franchise.
No franchise registration law is enacted. No franchise registration is required.
No business opportunity registration law is enacted. No business opportunity registration is required.
No franchise registration law is enacted. No franchise registration is required.
No business opportunity registration law is enacted. No business opportunity registration is required.
No franchise registration law is enacted. No franchise registration is required.
No business opportunity registration law is enacted. No business opportunity registration is required.
No franchise registration law is enacted. No franchise registration is required.
Business opportunity law is enacted. “Seller-Assisted Marketing Plan” law provides an exemption for franchisors who are in compliance with the FTC Rule if the sale does not involve the use of phrases such as “buy back,” “secured investment” or the like. Franchisors must file Notice of Exemption and pay a $100 annual fee.
No franchise registration law is enacted. No franchise registration is required.
No business opportunity registration law is enacted. No business opportunity registration is required.
No franchise registration law is enacted. No franchise registration is required.
No business opportunity registration law is enacted. No business opportunity registration is required.
If your franchise involves vending machines, racks, display cases or similar devices, you may be required to register under New Hampshire Distributorship Disclosure Act.
No franchise registration law is enacted. No franchise registration is required.
No business opportunity registration law is enacted. No business opportunity registration is required.
No franchise registration law is enacted. No franchise registration is required.
No business opportunity registration law is enacted. No business opportunity registration is required.
Franchise registration law is enacted. Registration is required, with a recommend filing time of 90 days. The registration fee is $750. The registration requirements include filing a Franchise Disclosure Document (FDD) with New York Addenda and related documents. Related documents consist of:
- Uniform Franchise Registration Application
- Franchisor’s Costs and Sources of Funds
- Uniform Consent to Service of Process
- Anti-Fraud Statement
- Franchise Seller Disclosure Form
- Guarantee of Performance (if required)
- Consent of Accountants
- Advertising or promotional materials directed to prospective franchisees
These documents must also be included as PDFs on a CD-ROM.
No business opportunity registration law is enacted. No business opportunity registration is required.
No franchise registration law is enacted. No franchise registration is required.
Business opportunity law is enacted. Business opportunity law provides exemption from registration for franchisors with a federally registered trademark. If you do not have a federally registered trademark, you must file your FDD with the state. The filing fee is $10.
Franchise registration law is enacted. Registration is required, with a recommended filing time of 30 business days. The registration fee is $250. The registration requirements include filing a Franchise Disclosure Document (FDD) with North Dakota Addenda and related documents. Related documents consist of:
- Uniform Franchise Registration Application
- Franchisor’s Costs and Sources of Funds
- Uniform Consent to Service of Process
- Franchise Seller Disclosure Form
- Guarantee of Performance (if required)
- Consent of Accountants
- Advertising or promotional materials directed to prospective franchisees.
These documents must also be included as PDFs on a CD-ROM. Advertising materials must be filed 5 days before use.
No business opportunity registration law is enacted. No business opportunity registration is required.
No franchise registration law is enacted. No franchise registration is required.
Business opportunity law is enacted. Business opportunity law provides an exemption to franchisors who are in “full” compliance with the FTC Rule.
No franchise registration law is enacted. No franchise registration is required.
Business opportunity law is enacted. Business opportunity law provides exemption for franchisors that are in compliance with the FTC Rule.
No franchise registration law is enacted. No franchise registration is required.
No business opportunity registration law is enacted. No business opportunity registration is required.
No franchise registration law is enacted. No franchise registration is required.
No business opportunity registration law is enacted. No business opportunity registration is required.
No franchise registration law is enacted. No franchise registration is required. Franchisors are subject to FTC Franchise Rule.
No business opportunity registration law is enacted. No business opportunity registration is required.
Franchise registration law is enacted. Registration is required, with a recommended filing time of 60 days. The registration fee is $250. The registration requirements include filing a Franchise Disclosure Document (FDD) with Rhode Island Addenda and related documents. Related documents consist of:
- Uniform Franchise Registration Application
- Franchisor’s Costs and Sources of Funds
- Uniform Consent to Service of Process
- Franchise Seller Disclosure Form
- Guarantee of Performance (if required)
- Consent of Accountants
- Advertising or promotional materials directed to prospective franchisees.
These documents must also be included as PDFs on a CD-ROM. Advertising materials must be filed 5 days before use.
No business opportunity registration law is enacted. No business opportunity registration is required.
No franchise registration law is enacted. No franchise registration is required.
Business opportunity law is enacted. Business opportunity law provides exemption for franchisors with a federally or state registered trademark. Need to file Affidavit of Business Opportunity Exemption. There is no filing fee.
Franchise registration law is enacted. Need to file Franchise Notice Filing Application, Consent to Service of Process and PDF copy of FDD on CD-ROM and any advertising materials. The registration fee is $250.
Business opportunity law is enacted. Business opportunity law provides exemption for effectively registered franchisors.
No franchise registration law is enacted. No franchise registration is required.
No business opportunity registration law is enacted. No business opportunity registration is required.
No franchise registration law is enacted. No franchise registration is required.
Business opportunity law is enacted. Business opportunity law provides exemption for franchisors that are in material compliance with FTC Rule. Notice of Exemption is required, with a recommended filing time of 10 business days. The filing fee is $25. This is a one-time filing, except if address changes.
No franchise registration law is enacted. No franchise registration is required. Franchisors are subject to FTC Franchise Rule.
No business opportunity registration law is enacted. No business opportunity registration is required.
No franchise registration law is enacted. No franchise registration is required.
Business opportunity law is enacted. Business opportunity law provides exemption from registration as a business opportunity for franchisors with a federally or state registered trademark. All franchisors must file a Notice of Exemption form along with the payment of a $100 annual fee. Our fee is $380.
No franchise registration law is enacted. No franchise registration is required.
No business opportunity registration law is enacted. No business opportunity registration is required.
Franchise registration law is enacted. Registration is required, with a recommended filing time of 60 days. The registration fee is $500. The registration requirements include filing a Franchise Disclosure Document (FDD) with Virginia Addenda and related documents. Related documents consist of:
- Uniform Franchise Registration Application
- Franchisor’s Costs and Sources of Funds
- Uniform Consent to Service of Process
- Franchise Seller Disclosure Form
- Guarantee of Performance (if required)
- Consent of Accountants.
These documents must also be included as PDFs on a CD-ROM.
Business opportunity law is enacted. Business opportunity law provides exemption for franchisors.
Franchise registration law is enacted. Registration is required, with a recommended filing time of 90 days. The registration fee is $600. The registration requirements include filing a Franchise Disclosure Document (FDD) with Washington Addenda and related documents. Related documents consist of:
- Uniform Franchise Registration Application
- Franchisor’s Costs and Sources of Funds
- Uniform Consent to Service of Process
- Franchise Seller Disclosure Form
- Guarantee of Performance (if required)
- Consent of Accountants
- Advertising or promotional materials directed to prospective franchisees.
These documents must also be included as PDFs on a CD-ROM. Advertising materials must be filed 7 days before use.
Business opportunity law is enacted. Business opportunity law provides exemption for franchisors subject to franchise registration law.
No franchise registration law is enacted. No franchise registration is required.
No business opportunity registration law is enacted. No business opportunity registration is required.
Registration of a Uniform Franchise Registration Application, Uniform Consent to Service of Process and FDD and Exhibits with a recommended filing time of 10 business days. Registration can now be done electronically by credit card. The registration fee is $400.
No business opportunity registration law is enacted. No business opportunity registration is required.
No franchise registration law is enacted. No franchise registration is required.
No business opportunity registration law is enacted. No business opportunity registration is required.
What about states with registration exemptions?
Some states provide exemptions from registration based on a franchisor’s net worth or operational experience. These filings are typically waived by franchise registration states that trust franchisors with these qualifications have not committed severe sales violations and have the financial resources to be held accountable should a violation later occur.
Determining whether you are eligible for an exemption in franchise registration states can be a complex question. FranSource lends its franchise development expertise and connects franchisors with experienced legal counsel to assist in navigating these questions without added complications.
States that provide exemptions include: California, Illinois, Indiana, Maryland, New York, North Dakota, Rhode Island, Washington, and Virginia.
Certain franchise registration states employ “large franchisor” exemptions, however certain limitations do apply. Most importantly, the FTC Rule does not provide a similar exemption, so disclosure is still required under the FTC Rule even if a state exemption is allowed.
Overview of Net Worth Requirements
Exemptions based on net worth requirements vary state to state. Here are some examples:
- $5 million in California, Illinois, Indiana, New York, and Washington
- $10 million in Maryland, North Dakota, and Rhode Island
- $15 million in Virginia (Illinois and New York also have a $15 million “super large” franchisor exemption).
For franchise registration states with these requirements, franchisors must prove their net worth using audited financial statements. These exemptions also allow a franchisor to rely on the financial statements of its parent company so long as the franchisor has a minimum net worth of $1 million (or $3 million in the case of New York’s super large exemption).
Overview of Experience Requirements
Experience is another metric use to extend exemptions. Every registration state (except for super-large franchisor exemptions in New York and Illinois) include a minimum experience requirement for its large franchisor exemption. A franchisor must have a minimum number of years operating the business as a franchise. Though it varies by state, a franchisor is typically expected to have at least 25 franchised units in operation over the last five years. Depending on the situation, some states will allow parent companies to fulfill these standards.
Should I franchise my business?
There are many variables that a business must first consider before embarking on a franchise development program. As an initial step in determining the viability of franchising your business, we invite you to complete our 15 Key Questions Franchise Quiz.
Become our next franchising success!
Read testimonials from clients who chose FranSource to be their franchise consulting company.
"Working with FranSource has been a fantastic experience! Their clarity, organization, and attention to detail gave us complete confidence every step of setting up our franchise operation."
“With FranSource overseeing the entire development of our franchise operation, we were confident that our franchise would be successful. However, seeing is believing. We just awarded another multi ...
"I can’t speak highly enough of the FranSource team. They retooled our franchise development process after we worked with another franchise developer that provided a cookie-cutter approach that was too generic for our needs."
“We granted our 150th ALOHA franchise last week and we wanted to say thank you for your team's tremendous assistance and ongoing support. When we began the franchise project, it quickly ...
"We chose to work with FranSource because of their deep understanding of franchising and the personal interaction we were confident we would receive. FranSource helped us to ...
"In addition to fully developing our franchise operation, FranSource assisted with other aspects of our expansion program. We are very pleased with the franchise development services we received and the ongoing support ...
"When we made the decision to expand our business through franchising, we knew that we needed to work with a franchise consulting firm who fit our brand. We interviewed several franchise development companies ...
"FranSource has impacted our business in ways we never imagined, beyond simply franchising. Rather than taking a cookie-cutter approach during the franchise development process, they ...
"I interviewed three different franchise companies and picked Fransource to assist us. I would recommend any prospective client to consider working with FranSource, you will not regret it!!!"
"Working with FranSource has been a fantastic experience! Their clarity, organization, and attention to detail gave us complete confidence every step of setting up our franchise operation."
“With FranSource overseeing the entire development of our franchise operation, we were confident that our franchise would be successful. However, seeing is believing. We just awarded another multi ...
"I can’t speak highly enough of the FranSource team. They retooled our franchise development process after we worked with another franchise developer that provided a cookie-cutter approach that was too generic for our needs."
“We granted our 150th ALOHA franchise last week and we wanted to say thank you for your team's tremendous assistance and ongoing support. When we began the franchise project, it quickly ...
"We chose to work with FranSource because of their deep understanding of franchising and the personal interaction we were confident we would receive. FranSource helped us to ...
"In addition to fully developing our franchise operation, FranSource assisted with other aspects of our expansion program. We are very pleased with the franchise development services we received and the ongoing support ...
"When we made the decision to expand our business through franchising, we knew that we needed to work with a franchise consulting firm who fit our brand. We interviewed several franchise development companies ...
"FranSource has impacted our business in ways we never imagined, beyond simply franchising. Rather than taking a cookie-cutter approach during the franchise development process, they ...
"I interviewed three different franchise companies and picked Fransource to assist us. I would recommend any prospective client to consider working with FranSource, you will not regret it!!!"
"Working with FranSource has been a fantastic experience! Their clarity, organization, and attention to detail gave us complete confidence every step of setting up our franchise operation."
“With FranSource overseeing the entire development of our franchise operation, we were confident that our franchise would be successful. However, seeing is believing. We just awarded another multi ...
"I can’t speak highly enough of the FranSource team. They retooled our franchise development process after we worked with another franchise developer that provided a cookie-cutter approach that was too generic for our needs."
“We granted our 150th ALOHA franchise last week and we wanted to say thank you for your team's tremendous assistance and ongoing support. When we began the franchise project, it quickly ...
"We chose to work with FranSource because of their deep understanding of franchising and the personal interaction we were confident we would receive. FranSource helped us to ...
"In addition to fully developing our franchise operation, FranSource assisted with other aspects of our expansion program. We are very pleased with the franchise development services we received and the ongoing support ...
"When we made the decision to expand our business through franchising, we knew that we needed to work with a franchise consulting firm who fit our brand. We interviewed several franchise development companies ...
"FranSource has impacted our business in ways we never imagined, beyond simply franchising. Rather than taking a cookie-cutter approach during the franchise development process, they ...
"I interviewed three different franchise companies and picked Fransource to assist us. I would recommend any prospective client to consider working with FranSource, you will not regret it!!!"
"Working with FranSource has been a fantastic experience! Their clarity, organization, and attention to detail gave us complete confidence every step of setting up our franchise operation. In every meeting, they were always prepared, always patient, and always knew what we needed before we even asked. We say all the time how lucky we were to find FranSource. They made the entire journey feel far less overwhelming and genuinely enjoyable. We’re grateful for the partnership and support Fransource has provided. If you’re considering franchising, you’ll be in great hands with their team."
- The Golf Crypt
"With FranSource overseeing the entire development of our franchise operation, we were confident that our franchise would be successful. However, seeing is believing. We just awarded another multi-unit franchise and we want to thank you and your team for the incredible commitment you demonstrated, and continue to demonstrate, to helping make our franchise a success. Our franchisees are extremely impressed with the documents, manuals and other materials you developed, which of course makes a great impression on our company. FranSource has definitely gone above and beyond our expectations."
- Gus's Fried Chicken
"I can’t speak highly enough of the FranSource team. This has continued to be one of our most valuable relationships. FranSource literally retooled our entire franchise development process after we worked with another franchise development company that provided a cookie-cutter approach that was too generic for our needs. FranSource quickly jumped in, became extremely familiar with our industry and business, and developed an extremely robust end-to-end franchise sales process within a couple of months. Due to the in-depth franchise knowledge demonstrated by the FranSource team, it was evident we needed to revisit our Franchise Disclosure Document and Franchise Operations Manual. FranSource conducted a thorough review of the documents and enhanced those documents as well. Steve and his team are truly franchise development specialists, and we highly recommend FranSource to other businesses that are considering franchising."
- Hudson Valley Swim
“We granted our 150th ALOHA franchise last week and we wanted to say thank you for your team's tremendous assistance and ongoing support. When we began the franchise project, it quickly became apparent that the FranSource team truly cares about our company and the success of our franchise. As we reflect on the growth of our brand, we believe we owe a large part of our success to the assistance and guidance FranSource has provided."
- Aloha
"We chose to work with FranSource because of their deep understanding of franchising and the personal interaction we were confident we would receive. FranSource helped us to quickly build a successful franchise model and were involved in every aspect of our franchise development process, including areas outside of the original development project to ensure we operated according to best practices. Every document and material FranSource developed for us was incredibly detailed and professional. To cite just one example, the 800+ page Operations & Policies Manual FranSource developed for our franchisees captured EVERY aspect of developing and operating a Smokin' Oak Wood-Fired Pizza franchise. Suffice to say that our franchises are extremely impressed. We greatly appreciate the expert assistance FranSource provided and continues to provide to help ensure our success. We strongly recommend FranSource to business owners that are considering franchising their business."
- Smokin'Oak Wood-Fired Pizza
"In addition to fully developing our franchise operation, FranSource assisted with other aspects of our expansion program. We are very pleased with the franchise development services we received and the ongoing support FranSource continues to provide. With Interior Magic franchises now located coast-to-coast, we feel very qualified to recommend FranSource to anyone considering franchising their business."
- Interior Magic
"When we made the decision to expand our business through franchising, we knew that we needed to work with a franchise consulting firm who fit our brand. We interviewed several franchise development companies to get started. It only took a single call with Steve and his team to know that FranSource was the best fit for us. It was clear they fully understand what it takes to successfully franchise a business and they were 100% committed to advising and supporting us every step of the way. When we began the franchise development process, it was hard to imagine selling our first franchise. However, less than a month after launching our franchise opportunity we granted our first franchise! Steve and his team were completely hands on throughout the entire development process and will continue to be a key asset to our company as we grow."
- Global Brew Tap House
"FranSource has impacted our business in ways we never imagined, beyond simply franchising. Rather than taking a cookie-cutter approach during the franchise development process, they examined every aspect of our business and provided valuable input concerning operational procedures that helped us further refine our system. FranSource continues to assist us with many aspects of our growth and their team has always proved extremely competent. We highly recommend FranSource."
- Compuchild
"I interviewed three different franchise companies and picked FranSource to assist us in franchising our business. I have worked with FranSource for a couple years now and we are so sure that selecting FranSource was the right decision. They are experienced, professional and caring. They have gone above and beyond and are a true partner. FranSouce has coached us through our first five locations which is part of their contract and none of the other companies offered this benefit. Truly, I would recommend any prospective client to consider working with FranSource, you will not regret it!!!"
- Evexia Wellness Spa
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