Steps to register your FDD
The Steps involved in registering your FDD, or filing your FDD at the state level, include:
First determine the state(s) that are involved in your franchise sale. Consider that more than one state may be involved and factors that you should evaluate with your legal counsel include: (a) the state where the franchised business will be established; (b) the franchisee’s state of residence, (c) any state where franchise sales activities / negotiations occurred, and (d) the state from which your franchise company operates.
Determine the FDD registration and filing status of the state(s) involved in your franchise sale.
If a state involved in your franchise sale is a franchise registration state you must file a Uniform Franchise Registration Application with the designated state franchise regulator. You must include with your application a copy of your FDD and payment for the state’s registration fee. Once the application is received it will be reviewed by a state regulator. The process and fees vary on a state-by-state basis and are outlined below. Likewise, for franchise filing states, each state requires a different notification and process that must be followed.
State Franchise Laws
At the state level there are various franchise registration, filing, disclosure, and relationship laws that are imposed on franchisors and that vary from state-by-state.
Franchise registration states require annual FDD registration, franchise filing states require either one-time or annual franchise filings, and non-registration states do not require any FDD registration or filings.
We can help you timely and cost-effectively register your FDD and keep your franchise sales up & running.
Federal Franchise Laws
At the federal level, franchising is regulated by the Federal Franchise Rule and franchise regulations implemented and enforced by the Federal Trade Commission.
Franchisors must disclose a properly issued and current franchise disclosure document 14 days before offering or selling a franchise. Under the federal rule, franchise compliance is largely self-regulated and franchisors are not required to file or register their FDD with any federal agency.