State Franchise Registration Laws

Which U.S. states require franchisors to register or file before selling franchises in 2025, and what registration means for buyers. According to the North American Securities Administrators Association, 14 U.S. states (the so-called registration states) require pre-sale FDD filing with a state agency, while another set imposes lighter business-opportunity rules; the rest accept the federal FTC Franchise Rule alone. See our methodology for how each state record is sourced and updated.

Covering all 50 states + District of Columbia. Data sourced from state securities and franchise regulators.

Disclaimer: This page is for informational purposes only. State franchise laws change. Always verify current requirements with a qualified franchise attorney before buying or selling a franchise.
51
States + DC covered
15
Registration states
36
FTC Rule-only states
14
Business days to review FDD

Federal vs. State Franchise Law

All franchisors in the United States must comply with the FTC Franchise Rule — a federal regulation requiring delivery of a Franchise Disclosure Document (FDD) at least 14 calendar days before any agreement is signed or money exchanged.

Additionally, 15 states have their own franchise registration laws that go beyond the federal rule. In these states, franchisors must register their offering with the state regulator and receive approval before offering or selling franchises to residents of that state.

As a prospective buyer in a registration state, this provides an additional layer of protection: the state has reviewed the FDD and franchisor's financial condition before the offering is approved.

Registration Required (15 states)

Franchisors must register with the state and receive approval before offering franchises to residents. Buying from an unregistered franchisor in these states may violate the law.

State State Name
CA California
HI Hawaii
IL Illinois
IN Indiana
MD Maryland
MI Michigan
MN Minnesota
NY New York
ND North Dakota
OR Oregon
RI Rhode Island
SD South Dakota
VA Virginia
WA Washington
WI Wisconsin
FTC Rule States (36 states + DC)

No state registration required. Federal FTC Franchise Rule applies — franchisors must still provide the FDD 14 days before signing.

AL Alabama AK Alaska AZ Arizona AR Arkansas CO Colorado CT Connecticut DE Delaware DC District of Columbia FL Florida GA Georgia ID Idaho IA Iowa KS Kansas KY Kentucky LA Louisiana ME Maine MA Massachusetts MS Mississippi MO Missouri MT Montana NE Nebraska NV Nevada NH New Hampshire NJ New Jersey NM New Mexico NC North Carolina OH Ohio OK Oklahoma PA Pennsylvania SC South Carolina TN Tennessee TX Texas UT Utah VT Vermont WV West Virginia WY Wyoming

What Registration Requirements Mean for Buyers

If You Live in a Registration State

  • The franchisor must be registered and approved in your state before you can legally be offered a franchise
  • Ask to see the state's approval letter — if the franchisor can't produce one, that's a serious red flag
  • Your state regulator may have reviewed the FDD for completeness; you can often contact the agency directly with questions
  • Registration states typically have additional anti-fraud protections and remedies beyond the federal rule

If You Live in an FTC Rule-Only State

  • You're still entitled to the full FDD at least 14 calendar days before signing or paying
  • Never sign anything or pay any money before receiving and reviewing the FDD
  • Have a qualified franchise attorney review the FDD — this is non-negotiable
  • Contact the FTC or your state attorney general if you suspect fraud

Exemptions

Many registration states include exemptions for certain large or well-established franchisors (e.g., publicly traded companies, franchisors with long operating histories and large numbers of units). Exemptions don't mean the franchisor is exempt from providing the FDD — they may just be exempt from the registration filing.

Data sources: State franchise laws are compiled from state securities regulators, state attorney general offices, the FTC, and the American Bar Association Forum on Franchising. State laws change — verify with a qualified franchise attorney before relying on this information.