Franchise Laws by State
Franchising is regulated in all 50 states and all U.S. territories through the federal Franchise Rule. Certain states have enacted franchise specific laws and general business opportunity laws. These state laws impose various duties and obligations on franchisors to follow on a state-by-state basis. Its important to understand the variances in state franchise laws when offering franchise opportunities throughout the United States.
There are currently 5 different Degrees of state regulation which may effect the offer and sale of franchise opportunities
In franchise registration states, a franchisor must submit application materials and obtain regulators approval before offering any franchise opportunities.
In annual filing states, a franchisor can offer and sale franchises in with a valid FDD if they file an annual notice.
In one-time filing states, a franchisor can offer and sale franchises in perpetuity (subject to changes in state law) with a valid FDD after they file a one-time notice.
In business opportunity states, franchisors must register as a business opportunity unless they have a federally registered trademark or another exemption applies.
In non-registration states, a franchisor can offer and sale franchises on a valid FDD without obtaining any state approval.
What states do not require franchise registration?
The "non-registration states"
You can learn more about the process in certain states by following the links on each list. We are constantly updating our website and adding new content. You call also learn more about the different franchise models on our website. If you have any state specific questions we haven’t addressed or you have general franchise legal questions, please schedule a free video consultation. We would love to help you on your franchise journey.