If you find yourself in a position where you are interested in purchasing a franchise, then you may come across what is called a Franchise Disclosure Document (FDD). This is an important document that will allow you to understand whether it is a wise business move to buy into a franchise. And, as a franchisor, you must properly register your FDD and pay attention to whether your state is a franchise registration state. Continue reading to learn what the franchise registration states are and how one of the experienced franchise acquisition attorneys at FortmanSpann, LLC, can help you in handling an FDD.

What is a Franchise Disclosure Document?

Put simply, the FDD is a legal document that discloses the following information about your franchise:

  • Your franchise’s fees.
  • Your franchise’s opportunities.
  • The legal relationship between the franchisee and you, the franchisor.

What are the different registration states in the United States?

While the Federal Trade Commission has rules for what should be included in the FDD, there are no federal registration requirements, review requirements, or penalties for violation. This is why, in an effort to regulate, some states issue additional franchise laws that may require you to register your FDD with a local state regulator before offering or selling your franchise within the state.

Notably, there are 13 states that fall under this category. Without further ado, the different registration states throughout the United States are as follows:

  • California (CA).
  • Hawaii (HI).
  • Illinois (IL).
  • Indiana (IN).
  • Maryland (MD).
  • Michigan (MI).
  • Minnesota (MN).
  • New York (NY).
  • North Dakota (ND).
  • Rhode Island (RI).
  • Virginia (VA).
  • Washington (WA).
  • Wisconsin (WI).

What else should I know about registration states in the United States?

Say, for instance, that you have not yet registered your principal trademark with the United States Patent and Trademark Office. Then, you may need to register your FDD with your local state regulator before offering or selling your franchise within the state. This may be regardless if your state is considered a registration state.

The four states in which this rule applies are as follows:

  • Connecticut (CT).
  • North Carolina (NC).
  • South Carolina (SC).
  • Maine (ME).

Nevertheless, it is important that you are equipped with the proper tools to properly register your FDD. This will only benefit your franchise in the long run, as you will be able to offer it, sell it, and overall, expand it. You may require the legal assistance of a skilled franchise law attorney to execute this. So, whenever you get the free chance, pick up the phone and give our firm a call.