Register Franchise Offering
14 states require you to file your Franchise Disclosure Document and register your franchise offering with the state before you can offer or sell franchises in that state or to residents of the state. These are known as “registration states,” where your franchise offering must be registered. The registrations are good for one year (see Step 7 – Annual Renewals & Amendments). There are 36 “non-registration states” where no state registration requirement exists, so you don’t need to “file” your franchise. These states, under federal law, still require a legally compliant Franchise Disclosure Document, Franchise Agreement, and ancillary contract be provided to prospective franchisees, however. The Larkin Hoffman Franchise Team will prepare the paperwork necessary to file and register your Franchise Disclosure Document in the states where you are franchising. Sometimes the state agency that processes the filing may reject it for one or more reasons through something called a comment letter. The Larkin Hoffman Franchise Team will address any comment letters sent by state agencies.
In the beginning, you don’t have to file or register your franchise offering in the registration states where you don’t intend to franchise until such time as you find franchisees in those states. However, wherever you do decide to franchise in those states, you must have a Franchise Disclosure Document that complies with the restrictions, disclaimers, etc. required by state and federal law.
A couple of states also require that any advertisements used in the offering or selling of franchises must be filed or registered with the state before those advertisements can be used. Sometimes the state must also approve the advertisement itself before it can be used. And a few states have specific disclaimers or other information that must be included in any advertisements. While this sounds complicated, the Larkin Hoffman Franchise Team is used to dealing with these regulations in any state, and will review and, if needed, revise any advertisements, and file or register them with any states that require it.
Now comes the fun part! Once your franchise offering is registered where required, and you have an updated Franchise Disclosure Document, Franchise Agreement, and ancillary contracts in place, you can start offering and selling franchises in the 14 registration states where your franchise offering is registered as well as in the 36 non-registration states. There are certain laws about how you can sell franchises that we’ll help you navigate (including one applicable in each state requiring you to provide a copy of the Franchise Disclosure Document, Franchise Agreement, and ancillary contracts to prospective franchisees several days before the prospective franchisees can buy the franchise).
Learn more about Selling Franchises and how to comply with state and federal laws during the sales process.