state specific franchise law header

Complying with federal franchising laws is the “easy” part. It’s complying with all of the individual state requirements that can really give you gray hairs. The FTC’s federal franchise rule does not have any of registration requirements, just that prospects are properly disclosed with a properly drafted franchise disclosure document (FDD). The states on the other hand, have varying levels of what is required of franchisors prior to offering or selling franchises in their states. Some states have no additional requirements, and franchisors in those states just need to follow the federal franchise rule. Other states require registration of what they typically call “business opportunities.” These business opportunity states typically allow franchisors, who are in compliance with federal franchise laws, to file some form of exemption notice as opposed to going through the full business opportunity registration process. These exemption notices may be one-time filings, or need to be filed every year. Some additionally require that the franchisor own and license a registered trademark as part of their franchise opportunity.

The last set of states are what we refer to as franchise registration states. In these states, franchisors must register their FDD with the state prior to offering or selling franchises in that state (and in the case of NY, before a NY franchisor offers or sells any franchises, anywhere). The registration process varies from state to state, with some only requiring a simple filing of the FDD, while others conduct a thorough review of the FDD and its disclosures, often demanding the franchisor make changes along the way. This typically results in the process taking significantly longer than it does in non-registration states. Check out our map below to explore each state’s franchise requirements (and yes, we know DC isn’t a state)!

STATE FRANCHISE REGISTRATION STATUS AND FRANCHISE LAWS


Alabama

Registration or Filing Required? No
Business Opportunity Laws? No

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Alaska

Registration or Filing Required? No
Business Opportunity Laws? Yes

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Arizona

Registration or Filing Required? No
Business Opportunity Laws? Yes

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Arkansas

Registration or Filing Required? No
Business Opportunity Laws? No*

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California

Registration or Filing Required? Yes, Registration
Business Opportunity Laws? Yes

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Colorado

Registration or Filing Required? No
Business Opportunity Laws? No

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Connecticut

Registration or Filing Required? Yes, Filing
Business Opportunity Laws? Yes

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Delaware

Registration or Filing Required? No
Business Opportunity Laws? Yes

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District of Columbia

Registration or Filing Required? No
Business Opportunity Laws? No

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Florida

Registration or Filing Required? Yes, Filing
Business Opportunity Laws? Yes

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Georgia

Registration or Filing Required? No*
Business Opportunity Laws? Yes

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Hawaii

Registration or Filing Required? Yes, Registration
Business Opportunity Laws? Yes

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Idaho

Registration or Filing Required? No
Business Opportunity Laws? No

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Illinois

Registration or Filing Required? Yes, Registration
Business Opportunity Laws? Yes

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Indiana

Registration or Filing Required? Yes, Registration
Business Opportunity Laws? Yes

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Iowa

Registration or Filing Required? No
Business Opportunity Laws? Yes

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Kansas

Registration or Filing Required? No
Business Opportunity Laws? No

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Kentucky

Registration or Filing Required? Yes, Filing
Business Opportunity Laws? Yes

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Louisiana

Registration or Filing Required: No*
Business Opportunity Laws? Yes

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Maine

Registration or Filing Required? No*
Business Opportunity Laws? Yes

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Maryland

Registration or Filing Required? Yes, Registration
Business Opportunity Laws? Yes

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Massachusetts

Registration or Filing Required? No
Business Opportunity Laws? No

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Michigan

Registration or Filing Required? Yes, Registration
Business Opportunity Laws? Yes

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Minnesota

Registration or Filing Required? Yes, Registration
Business Opportunity Laws? Yes

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Mississippi

Registration or Filing Required? No
Business Opportunity Laws? No

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Missouri

Registration or Filing Required? No
Business Opportunity Laws? No

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Montana

Registration or Filing Required? No
Business Opportunity Laws? No

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Nebraska

Registration or Filing Required? Yes, Filing
Business Opportunity Laws? Yes

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Nevada

Registration or Filing Required? No
Business Opportunity Laws? No

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New Hampshire

Registration or Filing Required? No
Business Opportunity Laws? Yes

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New Jersey

Registration or Filing Required? No
Business Opportunity Laws? Yes

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New Mexico

Registration or Filing Required? No
Business Opportunity Laws? No

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New York

Registration or Filing Required? Yes, Registration
Business Opportunity Laws? No

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North Carolina

Registration or Filing Required? No*
Business Opportunity Laws? Yes

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North Dakota

Registration or Filing Required? Yes, Registration
Business Opportunity Laws? Yes

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Ohio

Registration or Filing Required? No
Business Opportunity Laws? Yes

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Oklahoma

Registration or Filing Required? No
Business Opportunity Laws? Yes

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Oregon

Registration or Filing Required? No
Business Opportunity Laws? Yes

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Pennsylvania

Registration or Filing Required? No
Business Opportunity Laws? No

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Rhode Island

Registration or Filing Required? Yes, Registration
Business Opportunity Laws? Yes

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South Carolina

Registration or Filing Required? No*
Business Opportunity Laws? Yes

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South Dakota

Registration or Filing Required? Yes, Registration
Business Opportunity Laws? Yes

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Tennessee

Registration or Filing Required? No
Business Opportunity Laws? No

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Texas

Registration or Filing Required? Yes, Filing
Business Opportunity Laws? Yes

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Utah

Registration or Filing Required? Yes, Filing
Business Opportunity Laws? Yes

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Vermont

Registration or Filing Required? No
Business Opportunity Laws? No

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Virginia

Registration or Filing Required? Yes, Registration
Business Opportunity Laws? Yes

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Washington

Registration or Filing Required? Yes, Registration
Business Opportunity Laws? Yes

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West Virginia

Registration or Filing Required? No
Business Opportunity Laws? No

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Wisconsin

Registration or Filing Required? Yes, Registration
Business Opportunity Laws? No

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Wyoming

Registration or Filing Required? No
Business Opportunity Laws? No

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