What are franchise registration states?
Franchise registration states require franchisors to register their FDD with a state regulator — and renew, usually annually — before offering franchises to residents. The commonly cited registration group is California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin, with filing mechanics varying by state; several other states require notice filings or exemption paperwork instead.
For buyers, registration is a modest safeguard: an examiner has reviewed the filing for completeness (not merit) in those states. For new franchisors, it is sequencing law: offering a franchise to a resident of a registration state before the state clears your filing can void the sale years later. State-by-state rules appear in our location guides.