We help franchisors ensure that their franchise and Franchise Disclosure Document (“FDD”) is properly registered in the states that require franchise or business opportunity registration.
In addition to an FTC-compliant Franchise Disclosure Document (“FDD”), some states also require Franchisors to file and register the FDD in the state before they can offer and sell franchises.
Connecticut, Kentucky, Nebraska, and Texas require a one-time notice filing of an intention to offer or sell franchises in the state. Florida, Michigan, and Utah require annual notice filings.
California, Hawaii, Illinois, Indiana, Maryland, Minnesota, New York, North Dakota, South Dakota, Rhode Island, Virginia, Washington, and Wisconsin, require Franchisors to file and register the FDD.
Many of these registration states will review the FDD and issue comments or changes that they would like to see made to the FDD. If the FDD is not in compliance with the FTC Franchise Rule, a state can refuse to register the FDD, and a franchisor will not be allowed to offer or sell franchises in that state.
Finally, if a franchisor does not have a federally registered trademark, business opportunity filings may be required in Connecticut, Georgia, Louisiana, Maine, North Carolina, and South Carolina
Before offering or selling franchises in the United States, make sure the appropriate state franchise filing has been made and the franchise offering is properly registered.