Franchise opportunities in California: real costs and the franchise rules that apply

A franchisor must register its Franchise Disclosure Document (FDD) with California's regulator before offering or selling franchises in the state. For you as a buyer, that means the FDD you receive is the state-registered version — and a franchisor that can't show a current California registration can't lawfully offer to you here. The federal 14-day FDD delivery rule applies on top of state registration.

After you sign: California's Franchise Relations Act (Bus. & Prof. Code § 20000 and following) restricts termination and non-renewal after you sign — good-cause and notice standards that sit on top of the registration requirement.

California's Franchise Investment Law requires registration with the Department of Financial Protection and Innovation (DFPI) before any offer is made to you.

Plain-words summary, not legal advice. Laws change — confirm current requirements with a franchise attorney before you sign.

In these states a franchisor must register its FDD with the state before offering or selling. Everywhere in the US, the FTC Franchise Rule requires FDD delivery at least 14 days before you sign or pay.

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

Filing states (notice or exemption only, no FDD review): Connecticut, Florida, Kentucky, Maine, Nebraska, North Carolina, South Carolina, Texas, Utah.

Separately, 19 states have franchise relationship laws limiting termination or non-renewal after you sign: Arkansas, California, Connecticut, Delaware, Hawaii, Illinois, Indiana, Iowa, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, Rhode Island, Virginia, Washington, Wisconsin.