State Facts on Franchising
Below are some state facts on franchising.
• Fifteen states have franchise investment laws that require franchisors to provide pre-sale disclosures, known as “offering circulars,” to potential purchasers.
• Thirteen of these state laws treat the sale of a franchise like the sale of a security. These thirteen states typically prohibit the offer or sale of a franchise within their state until a franchise offering circular has been filed on the public record with, and registered by, a designated state agency.
• Two of the fifteen states do not require a filing of offering circulars.
• The 15 States that have franchise investment laws, requiring an UFOC:
o California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York,
North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
• The 13 States which treat the sale of a franchise like a sale of a security—Typically
prohibit the offer or sale of a franchise within their state until a franchise offering circular (UFOC) has been filed on public record with and registered by a designated state agency:
—–California, North Dakota Hawaii, Rhode Island, Illinois, South Dakota, Indiana Virginia, Maryland, Washington, Minnesota, Wisconsin, New York
• The 2 States, which do not require the filing of offering circulars: Oregon(no filing) Michigan(file notice only)
Information on State Fees*
Can be included in general fee.
We can register them automatically in 32 states, the states that do not require registration.
However, in order to be register with some of these 32 states, the franchise company is required
to be registered with a state. Registration fees apply, including:
- California (US$675)
- New York (US$750)
- Hawaii (US$250)
- North Dakota (US$250)
- Illinois (US$500)
- Rhode Island (US$500)
- Indiana (US$500)
- South Dakota (US$250)
- Maryland (US$500)
- Virginia (US$500)
- Michigan (US$250)
- Washington (US$600)
- Minnesota (US$400)
- Wisconsin (US$400)
*Fees are subject to change as State’s see fit.