State-by-State Franchise Registration Guide

One of the most common questions new franchisors ask is: "Do I need to register my FDD in every state?" The answer is no. States fall into three categories:

Registration States (14 states)

These states require franchisors to register their FDD with a state agency before offering or selling franchises. Registration must be renewed annually.

| State | Initial Fee | Annual Renewal | Agency | |-------|------------|----------------|--------| | California | ~$675 | ~$675 | DFPI | | Hawaii | ~$500 | ~$500 | DCCA | | Illinois | ~$500 | ~$500 | Attorney General | | Indiana | ~$500 | ~$500 | Secretary of State | | Maryland | ~$500 | ~$500 | Securities Commissioner | | Minnesota | ~$400 | ~$400 | Dept of Commerce | | New York | ~$750 | ~$750 | Attorney General | | North Dakota | ~$250 | ~$250 | Securities Dept | | Rhode Island | ~$600 | ~$600 | DBR | | South Dakota | ~$500 | ~$500 | Securities Regulation | | Virginia | ~$500 | ~$500 | SCC | | Washington | ~$600 | ~$600 | DFI | | Wisconsin | ~$500 | ~$500 | DFI |

Total if you register in all 14 states: ~$6,825 initial + ~$6,825/year in renewals.

Strategy: Do NOT register in all of these upfront. Register only when you have a qualified buyer in that specific state.

Filing / Exemption States (7 states)

These states require a simple filing or exemption notice — not full FDD registration. Costs are minimal.

| State | Fee | Frequency | Notes | |-------|-----|-----------|-------| | Texas | $25 | One-time | Cheapest filing state | | Nebraska | $100 | One-time | Very cost-effective | | Kentucky | $100 | One-time | No further registration needed | | Connecticut | $0 | One-time | Free with USPTO trademark | | Florida | $0 | One-time | Free with FTC compliance | | Michigan | $250 | One-time | Notice of Intent only | | Utah | $100 | Annual | Low-cost annual filing |

Total for all filing states: $475 one-time + $100/year (Utah only).

Strategy: File in these states when you have a prospect there. The cost is minimal.

Non-Registration States (30+ states)

These states have no franchise registration or filing requirement. You only need to comply with the federal FTC Franchise Rule.

Alabama, Alaska, Arizona, Arkansas, Colorado, Delaware, Georgia, Iowa, Kansas, Louisiana, Maine, Massachusetts, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Vermont, West Virginia, Wyoming, Washington DC.

Cost: $0

Strategy: Start here. You can begin selling franchises in these states immediately — just provide your FDD to prospects 14 days before signing.

The Bottom Line

If you register in all 14 registration states upfront: ~$7,000/year If you start in free states and register only when you have a buyer: $0 to start, $250–$750 per state as needed

Use the interactive State Fee Optimizer in the Fee Reduction Toolkit above to calculate your specific costs based on the states you want to sell in.

Note: Fees are estimates based on publicly available state agency filings. Always verify current fees with the relevant state agency before filing.