📢 California Franchise Filing Fees Increased as of July 1, 2025
Effective July 1, 2025, California has increased its franchise registration and exemption filing fees across the board. These legislative changes, enacted through Assembly Bill 137, significantly impact both new and renewing franchisors doing business in California.
At Waldrop & Colvin, we work closely with franchisors to ensure filings are submitted on time, correctly, and strategically—especially in highly regulated states like California. Below is what you need to know about the fee changes and how they may affect your franchise compliance budget and registration strategy.
| Filing Type | New Fee (Effective July 1, 2025) | Former Fee |
|---|---|---|
| Initial Registration (Sec. 31111) | $1,865 | $675 |
| Renewal (Sec. 31121) | $1,245 | $450 |
| Initial Notice of Exemption (Secs. 31101, 31104, 31106, 31108, 31109) | $1,245 each | $450 each |
| Consecutive Subsequent Notice of Exemption (Same Sections) | $415 | $150 |
| Notice of Violation (Secs. 31303, 31304) | $1,865 | $675 |
These increases reflect a substantial rise—nearly tripling in some categories—and should be factored into your 2025–2026 compliance and budgeting plans.
đź’ˇ Note: Other filing types not listed above remain unchanged. Primarily:
| Filing Type | New Fee (Effective July 1, 2025) | Former Fee |
|---|---|---|
| Pre-Effective Amendment | $0 | $0 |
| Post-Effective Amendment (Sec. 31123) | $50 | $50 |
🛠️ A Refresher: California’s Franchise Registration Process
California is a registration state, meaning franchisors must file their Franchise Disclosure Document (FDD) with the Department of Financial Protection and Innovation (DFPI) before offering or selling franchises in the state.
⏳ Key Timing Considerations
Expiration Date: All California franchise registrations expire annually on April 20, regardless of when the registration was initially approved.
Renewals: Renewal applications must be submitted before April 20 to avoid lapses in registration. If a franchisor misses this deadline, they must submit a new initial registration, triggering the higher “initial” filing fee—now set at $1,865.
Late Renewals: Even one day past the deadline will result in DFPI rejecting your renewal and requiring payment of the initial application fee.Â
⚠️ Common Pitfall: Many franchisors inadvertently miss the April 20 deadline and must pay the higher initial registration fee again. With the new fee structure, this mistake just got much more expensive. Â
đź’Ľ What This Means for Franchisors
The updated fee structure reinforces the importance of early planning and timely filing. Franchisors should:
Budget for the new fee levels, especially for multiple exemptions or multi-state offerings.
Calendar deadlines well in advance of April 20 to ensure timely submission.
Communicate deadlines to accountants performing your audit. Â
Engage legal counsel to assist with filings, amendments, and exemptions—particularly in complex registration states like California.
At Waldrop & Colvin, we offer flat-fee compliance packages to help our clients stay ahead of filing deadlines and avoid costly delays. We also track all key renewal and registration dates for our franchise clients.
đź“Ł Need Help with California Franchise Compliance?
Waldrop & Colvin supports franchisors nationwide, with a special focus on regulatory hotspots like California. Our team can help you:
Prepare and file new or renewal FDD registrations
Determine eligibility for exemptions
Track deadlines and manage filingsÂ
Navigate communications with DFPI
- Disclose prospects and prepare contracts
📅 Let’s Talk: If you’re a franchisor operating in California or planning to expand there, contact us today to schedule a free consult. We’ll help ensure your documents are ready, your deadlines are met, and your fees are minimized wherever possible.
