What are “Franchise Registration States”?

The Federal Trade Commission is in charge of setting regulations for franchises in the U.S., many of which were established when the Federal Franchise Rule was enacted in 1979. 

Franchisees are protected under a Franchise Disclosure Document, but because this form isn’t federally required, some states have taken it upon themselves to ensure that franchisors and franchisees are following the rules set forth in the Federal Franchise Rule. 

The states that require a franchisee’s Federal Disclosure Document to be registered with a state before opening are:

• California
• Hawaii
• Illinois
• Indiana
• Maryland
• Michigan
• Minnesota
• New York
• North Dakota
• Rhode Island
• Virginia
• Washington
• Wisconsin

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• How Do You Build a Franchise Business Plan?
• What Should You Research Before Buying a Franchise?