Franchise Registration State

A franchise registration state is a U.S. state that requires franchisors to register their Franchise Disclosure Document with a state regulatory agency before offering or selling franchises within that state. There are currently 14 franchise registration states (California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin) plus the U.S. Virgin Islands. In these states, the FDD must be filed with and approved by the state before any franchise sales activity can occur. Registration states also have specific requirements for FDD amendments and annual renewals. Filing in all registration states can cost a franchisor $5,000-15,000 per year in fees alone.