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For a franchisee, the buying process can be difficult if not educated on the exact steps of getting from inquiry to purchase. Many franchisors include proposed steps to ownership, but rarely do they include in depth guidance.

As a part of 1851&rsquo;s Guide to Buying a Franchise issue, we interviewed Steve Beagelman, CEO of <a href="https://smbfranchising.1851franchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=guide-to-buying-a-franchise-the-franchise-disclosure-document-2703046" target="_blank" rel="nofollow" target="_blank">SMB Franchise Advisors*</a>, on what the franchisee and the franchisor should know about the franchise disclosure document.

A&nbsp;franchise disclosure document&nbsp;(FDD) is a legal document which is presented to prospective buyers of franchises in the pre-sale disclosure process in the United States.

Both would-be buyers and franchisors need to know that some states require different regulations for the FDD.

Charles Internicola, a national franchise attorney from <a href="http://www.franchiselawsolutions.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=guide-to-buying-a-franchise-the-franchise-disclosure-document-2703046" target="_blank" rel="nofollow" target="_blank">Internicola Law Firm</a>, wrote in this <a href="http://www.franchiselawsolutions.com/blog/the-franchise-registration-states/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=guide-to-buying-a-franchise-the-franchise-disclosure-document-2703046" target="_blank" rel="nofollow" target="_blank">article that</a>: While&nbsp;Federal Law&nbsp;provides an overriding framework regulating the offer and sale of franchises throughout the entire country, fifteen states have enacted their own franchise laws that, supplement and add additional regulations to be followed by franchisors. In thirteen of the states, registration of the franchisors Franchise Disclosure Document (FDD)&nbsp;is required.

The states that include registration are as follows:

States that have Enacted Supplemental Franchise Laws&nbsp;and&nbsp;Require Registration of a Franchise Disclosure Document:

<ul style="margin-left: 40px;">
	<li>California</li>
	<li>Hawaii</li>
	<li>Indiana</li>
	<li>Maryland</li>
	<li>Michigan</li>
	<li>Minnesota</li>
	<li>New York</li>
	<li>North Dakota</li>
	<li>Rhode Island</li>
	<li>Virginia</li>
	<li>Washington</li>
	<li>Wisconsin</li>
</ul>

States that have Enacted Supplemental Franchise Laws but&nbsp;do not&nbsp;Require Registration of a Franchise Disclosure Document:

<ul style="margin-left: 40px;">
	<li>Michigan (only notice)</li>
	<li>Oregon (no filing)</li>
	<li>South Dakota (filing only)</li>
</ul>

More information about the FDD can be found at these sites:

<ul style="margin-left: 40px;">
	<li><a href="https://www.ftc.gov/tips-advice/business-center/guidance/consumers-guide-buying-franchise?utm_source=1851franchise.com&utm_medium=article&utm_campaign=guide-to-buying-a-franchise-the-franchise-disclosure-document-2703046" target="_blank" rel="nofollow" target="_blank">https://www.ftc.gov/tips-advice/business-center/guidance/consumers-guide-buying-franchise</a></li>
	<li><a href="https://www.franchisesolutions.com/blog/index.php/2013-11/tip-tuesday-fdd/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=guide-to-buying-a-franchise-the-franchise-disclosure-document-2703046" target="_blank" rel="nofollow" target="_blank">https://www.franchisesolutions.com/blog/index.php/2013-11/tip-tuesday-fdd/</a></li>
	<li><a href="https://www.franchisesolutions.com/blog/index.php/2013-11/tip-tuesday-fdd/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=guide-to-buying-a-franchise-the-franchise-disclosure-document-2703046" target="_blank" rel="nofollow" target="_blank">https://www.entrepreneur.com/article/222438</a></li>
</ul>

Guide to Buying a Franchise: The Franchise Disclosure Document

1851 Franchise

SMB Franchise Advisors' CEO Steve Beagelman Provides Insight into what Would-Be Buyers and Franchisors Should Know about the Franchise Disclosure Document

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Sola Salons

Sola Salons Targets Chicago for Strategic Franchise Growth

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Melting Pot

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How Melting Pot Franchisees Drive Year-Round Success Through Strategic Promotions and Local Marketing

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Crust Pizza Co.

Crust Pizza Co. - Technology Piece - CTO Nick Fontenot - May 2025 - 1851 Franchise

Crust Pizza Co. Builds the Future of Franchising With Tech-First Strategy

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Paris Baguette’s Recipe for Expansion: Leadership, Community and A Vision for 1,000 Cafés by 2030

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Seniors Helping Seniors®

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Heart and Purpose: Couple Launch Seniors Helping Seniors® Franchise in Northern Arizona

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