Registration Services

Franchise Disclosure Document (FDD) is a legal document which is presented to prospective buyers of franchises in the pre-sale disclosure process in the United States. Prior to revisions made by the Federal Trade Commission in July of 2007, the document was known as the Uniform Franchise Disclosure Document or UFDD. Franchisors were given until July 1, 2008 to comply with the changes. 

Under the Franchise Rule, which is enforced by the Federal Trade Commission (FTC), a prospective franchisee must receive the franchisor's FDD franchise disclosure document at least 14 days before they are asked to sign any contract or pay any money to the franchisor or an affiliate of the franchisor. The prospective franchisee has the right to ask for (and get) a copy of the sample franchise disclosure document once the franchisor has received the prospective franchisee's application and agreed to consider it. The franchisor may provide a copy of its franchise disclosure documents on paper, via email, through a web page, or on a disc.

Registration States

As a controlled business offering, Franchisors are mandate by various States to "Register" in their state prior to the committal of any franchise offering. All Franchisors are required to comply with Federal Trade Commission (FTC), Registration State, Filing State, Exemption State compliance requirements. This means that no franchise can be signed or committed to purchase in a state that has a state approval requirement. 

The following States require pre-sale registration, approval and/or fees prior to selling of a franchise in the State or from the State. Below you will find an agency by State listing:

CALIFORNIA 
Department of Corporations
Franchise Division
HAWAII 
Franchise & Securities Division 
State Department of Commerce 

ILLINOIS 
Franchise Division
Office of Attorney General
INDIANA 
Franchise Division 
Secretary of State

MARYLAND 
Franchise Office 
Division of Securities
MINNESOTA 
Department of Commerce 
Franchise Division

NEW YORK 
Franchise & Securities Division
State Department of Law
NORTH DAKOTA 
State Securities Commissioner
Franchise Examiner

RHODE ISLAND 
Division of Securities, 
Franchise Office
SOUTH DAKOTA 
Division of Securities 
Franchise Administration

VIRGINIA 
Franchise Office State 
Corporation Commission 
WASHINGTON 
Department of Financial Institutions 
Securities Division

WISCONSIN 
Franchise Office Wisconsin 
Securities Commission 

Franchise Registrations Firms

Professional consulting firms specialize in dealing with the extensive red-tape of State franchise registration. 
Business Development Centers (BDC) is one such firm that provides franchise registration and compliance services to emerging franchise organizations. BDC franchise registration and compliance services are comprehensive and provide their clients the following critical compliance elements and respective services:

  • Document Compliance Review - Review your current Uniform Franchise Disclosure Document (UFDD) and Franchise Agreement and make necessary changes in consultation with you to ensure that they comply with the regulations of the states in which you want to be registered.
  • Initial State Franchise Registration - File all necessary application forms and documents, monitor and expedite the registration process, work closely with state examiner colleagues, respond to comments from the states, keep you updated.
  • Franchise Renewal Registration - Maintain detailed scheduling records to ensure collection of all data and forms needed for your timely renewal in each state. Update disclosure documents as needed, in consultation with you. File applications, monitor and expedite the process.
  • Required Document Modification - When changes in your franchise structure require modifications to your documents, make the changes as part of our regular service to you.
  • Material Change Compliance - Certain types of changes in your franchise program are considered to be material to the franchise offering, and require a special "Post-effective Amendment" filing of your modified documents. The document modifications and filings are also part of their regular service.
  • Documentation Library - The maintenance of a complete library of your documents in their electronic files, which are backed-up regularly.

    For additional information about registering a franchise or for general registration, exemption or filing states information contact the professional consulting firm Business Development Centers (BDC)