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Washington State Franchise Filing and FDD Registration: Washington Franchise Laws

Washington State is a Franchise Registration State. The initial FDD filing fee is $600 and the annual renewal fee is $100.

Washington State is a franchise registration state. As a franchisor, before offering or selling a franchise in Washington, you must register your FDD with the Securities Division of the Washington State Department of Financial Institutions. The initial filing fee is $600 and the renewal fee is $100. FDD registration lasts for one year and requires annual renewal.

To learn more about registering your FDD with the Washington State Department of Financial Institutions and how we can help get you registered, give us a call at (800) 976-4904 or contact us.

Washington State Franchise FAQs

Who Regulates Franchises in Washington?

The Securities Division of the Washington State Department of Financial Institutions regulates and oversees the enforcement of Washington’s Franchise Investment Protection Act and the registration of FDD’s. Washington State’s franchise laws are comprised of the Washington Franchise Investment Protection Act which defines a franchise as:

What Should I Include with My Washington Franchise Application?

When filing your Washington registration application, you must include the following with your application:

  • Filing fee of $600 for initial registration applications and $100 for renewals;
  • FDD including Washington State addendum;
  • Franchise registration application;
  • Salesman disclosure form; and
  • Financial statements with accountants consent.

Where Do I File My Washington FDD Registration Application?

The registration application should be mailed to the following address:

Washington State Department of Financial Institutions
Securities Division
P.O. Box 9033
Olympia, WA 98507
(360) 902-8760

What are the Fees for the Franchise Applications in Washington?

The filing fee for Initial FDD registration in Washington is $600 and the fee for annual FDD renewals and updated is $100.

Does Washington State Impose Escrow or Impound Conditions?

The Department of Financial Institutions will evaluate a franchisor’s balance sheet and if, according to the Department, the Franchisor possesses insufficient shareholder equity, the Department may impose an impound condition where a Franchisor’s registration is contingent upon a franchisor agreeing to escrow its receipt of upfront franchise fees until the franchisee is ready to open the franchised business. The following link is to Washington State’s sample Impound Agreement. Alternatively, a franchisor may agree to defer receipt of its initial franchise fee.

When Do I Have to Renew My Washington FDD Registration?

You must renew your FDD registration no later than 15 business days prior to the expiration of your then current registration. The franchise registration renewal fee is currently $100.

When Do I Have to Amend My Washington FDD Registration?

In Washington State and every other franchise registration state, you must amend and update your FDD registration whenever a "material change" in the disclosures in your FDD occurs. Under the Washington Franchise Investment Protection Act (RCW 19.100.070), franchisors must file a franchise registration amendment whenever the franchisor experiences:

  • A material change in the condition of the franchisor
  • A material change in the condition of the subfranchisor
  • A material change in the information contained in the FDD

An amendment for a material change must be filed as soon as reasonably possible and before any additional franchise sales. The franchise registration amendment application must be filed along with a fee in the amount of $100.

What Qualifies as a Franchise in Washington State?

Under the Washington Franchise Investment Act, a franchise agreement is defined as an express, implied, oral, or written agreement, by which:

  • A person is granted the right to engage in the business of offering, selling, or distributing goods or services under a marketing plan prescribed or suggested in substantial part by the grantor or its affiliate;
  • The operation of the business is substantially associated with a trademark, service mark, trade name, advertising, or other commercial symbol designating, owned by, or licensed by the grantor or its affiliate; and
  • The person pays, agrees to pay, or is required to pay, directly or indirectly, a franchise fee.

Useful Links Concerning Washington’s Franchise Laws

  • Washington Dept Financial Institutions FAQ Page - This is the primary FAQ resource page published by the Washington State Dept of FInancial Institutions. This page includes links to Washington’s franchise registration application and includes franchise registration facts.
  • Washington Franchise Investment Protection Act - This is a link to the Washington’s Franchise Investment protection Act and is a useful reference for evaluating Washington franchise law.

Visit our interactive franchise registration map and learn more about state franchise laws, FDD registration states and required franchise filings.

To learn more about how we can help you with your franchise registrations and growing your franchise in Washington State and across the United States contact us at (800) 976-4904 or contact us.

Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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