Franchise Your Business: State Registrations

by FMS Franchise | Case Studies
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Franchise Your Business State Registrations
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Franchise Your Business:  State Registrations

When considering how to franchise your business, the legal requirements needed to offer a franchise opportunity are something to know and understand prior to making the leap into the franchise market.

The Federal Trade Commission is the federal entity that oversees franchise distribution, but the states have their own set of regulations and requirements that need to be addressed in order to be deemed compliant to offer a franchise model.

There are fifteen states that require registration in order to offer or market a franchise there.  When considering whether to franchise your business, these stipulations come into place as to whether you should register in a state:

1.  The State Where the Franchisor is Domiciled.

2.  The State Where the Franchisee is a Resident.

3.  The State Where the Franchise Sales Presentation takes Place.

4.  The State Where The Franchisee Incorporates their Business.

5.  The State Where the Franchisor Legally Files the Entity.

Here is a breakdown of the states that require registration to offer a franchise model.  Each of these states will have a different registration process that scrutinizes the franchisor regarding its ability to support a franchisee in their state.  When looking to franchise your business, typically, the state will want to know the financials of the franchise organization, review the UFDD, and have a state-specific application filled out in addition to paying an annual state registration fee.

CALIFORNIA

Franchise Division Department of Corporations 1515 K Street, Suite 200 Sacramento, CA 95814

Registration Fee California $ 675

HAWAII

Commissioner of Securities Department of Commerce and Consumer Affairs Business Registration Division Securities Compliance Branch 335 Merchant Street, Room 203, Honolulu, HA 96813

Registration Fee $125

ILLINOIS

Franchise Division Office of Attorney General 500 South Second Street

Registration Fee $500

INDIANA

Franchise Division Office of Secretary of State 302 W. Washington St., Rm. E111 Indianapolis, IN 46204 ( MARYLAND Office of the Attorney General Division of Securities 200 St Paul Place Baltimore, Maryland21202-2020

Registration Fee Indiana $ 500

MARYLAND

Office of the Attorney General Division of Securities 200 St Paul Place Baltimore, Maryland21202-2020

Registration Fee Maryland $ 500

MICHIGAN

Consumer Protection Division Franchise Section PO Box 30213 Lansing MI 48909

Registration fee Michigan $250

MINNESOTA

Minnesota Department of Commerce 85 7th Place East, Suite 500 St. Paul, MN 55101-2198

Registration Fee Minnesota $400

NORTH DAKOTA

Franchise Division Office of Securities Commission 600 East Boulevard – 5th Floor Bismarck, ND 58505 

Registration Fee North Dakota $250

NEW YORK

Franchise & Securities Division State Department of Law 120 Broadway 23rd Floor New York NY 10271

Registration Fee New York $ 750

OREGON

Corporate Securities Section
Dept. of Insurance & Finance
Labor & Industries Bldg.
Salem, OR 97310

RHODE ISLAND

Franchise Office Division of Securities 233 Richmond St., Suite 232 Providence, RI 02903

Registration Fee Rhode Island $ 500

SOUTH DAKOTA

Department of Revenue and Regulation Division of Securities 445 East Capitol Ave. Pierre, SD 57501 

Registration Fee South Dakota $250

VIRGINIA

State Corporation Division of Securities 1300 E. Main St. 1st Floor Richmond, VA 23219

Registration Fee Virginia $ 500

WASHINGTON (STATE)

The Department of Financial Institutions Securities Division P.O. Box 9033 Olympia, WA 98507-9033

Registration Fee Washington $ 600

WISCONSIN

Department of Financial Institutions Division of Securities 345 West Washington Ave., 4th Floor Madison, WI 53703

Registration Fee Wisconsin $ 400

For more information on how to Franchise Your Business, contact FMS Franchise corporate office, at (800) 610-0292.

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