Franchise
Disclosure Document
As of July 2007, the Uniform Franchise Offering
Circular (UFOC) has been renamed as the Franchise
Disclosure Document or FDD by the Federal Trade
Commission, the franchising regulator since the late
1970s. Franchisors have until July 1, 2008 to adopt
the new format.
The FDD will continue to provide necessary
information to the potential franchisee so that a
knowledgeable purchase may be made. However, there
are several revisions to the old UFOC that are
noteworthy.
First Meeting Between Franchisor
and Franchisee
Previously, the franchisor was required to provide a
potential franchisee with the UFOC document at their
first meeting. This will no longer apply.
Franchisors or their representatives are permitted
to have an initial meeting with a potential
franchisee without offering the FDD at that meeting,
but it needs to be provided at least 14 calendar
days before the franchisee signs a contract.
Smoother Franchise Closings
Franchise closings are expected to go more smoothly.
In the old UFOC, final documents were required to be
provided 5
business days before
closing. However in the FDD, the franchisor must
provide the final agreement 7
calendar days
before execution
only if the franchisor makes
major modifications on his/her own. Paying attention
to calendar days rather than business days
alleviates some of the prior confusion.
Electronic Delivery and Signature
The new Franchise Disclosure Document (FDD) provides
for more efficiency by electronic means. The
franchisor must inform the franchisee as to what
formats the documentation is available in so the
franchisee is able to accept, download, and print
the information. Also, signatures are acceptable in
a variety of ways including security codes,
passwords, and electronic signatures.
Franchise Registration
States
These States require registration and
approval of Franchise Documents prior to selling in the state or
from the state. All fees subject to change.
CALIFORNIA
Franchise Division Department of Corporations 1515 K Street, Suite
200 Sacramento, CA 95814
Registration Fee California $ 675
HAWAII
Commissioner of Securities Department of Commerce and Consumer
Affairs Business Registration Division Securities Compliance Branch
335 Merchant Street, Room 203, Honolulu, HA 96813
Registration Fee Hawaii $125
ILLINOIS
Franchise Division Office of Attorney General 500 South Second
Street
Registration Fee
Illinois $ 500
INDIANA
Franchise Division Office of Secretary of State 302 W. Washington
St., Rm. E111 Indianapolis, IN 46204 ( MARYLAND Office of the
Attorney General Division of Securities 200 St Paul Place Baltimore,
Maryland21202-2020
Registration Fee Indiana $ 500
MARYLAND
Office of the Attorney General Division of Securities 200 St Paul
Place Baltimore, Maryland21202-2020
Registration Fee Maryland $ 500
MICHIGAN
Consumer Protection Division Franchise Section PO Box 30213 Lansing
MI 48909
Registration Fee Michigan $ 250
MINNESOTA
Minnesota Department of Commerce 85 7th Place East, Suite 500 St.
Paul, MN 55101-2198
Registration Fee Minnesota $400
NORTH DAKOTA
Franchise Division Office of Securities Commission 600 East
Boulevard - 5th Floor Bismarck, ND 58505
Registration Fee North Dakota $ 250
NEW YORK
Franchise & Securities Division State Department of Law 120 Broadway
23rd Floor New York NY 10271
Registration Fee New York $ 750
OREGON
Corporate Securities Section
Dept. of Insurance & Finance
Labor & Industries Bldg.
Salem, OR 97310
RHODE ISLAND
Franchise Office Division of Securities 233 Richmond St., Suite 232
Providence, RI 02903
Registration Fee Rhode Island $ 500
SOUTH DAKOTA
Department of Revenue and Regulation Division of Securities 445
East Capitol Ave. Pierre, SD 57501
Registration Fee South Dakota $ 250
VIRGINIA
State Corporation Division of Securities 1300 E. Main St. 1st Floor
Richmond, VA 23219
Registration Fee Virginia $ 500
WASHINGTON
The Department of Financial Institutions Securities Division P.O.
Box 9033 Olympia, WA 98507-9033
Registration Fee Washington $ 600
WISCONSIN
Department of Financial Institutions Division of Securities 345 West
Washington Ave., 4th Floor Madison, WI 53703
Registration Fee
Wisconsin $ 400
Non-Registration States
These State do not require filing or registration to
be able to sell Franchises in the State. They only require that the
Franchisor follow the FTC Guidelines.
Alabama is a Franchising non-registration
State. It is not necessary to register your franchise in this State.
You are required to issue the Franchise Disclosure Document required
by the FTC, 14 days prior to accepting any money or commitment from
a potential franchisee.
Alaska is a Franchising non-registration State. It is
not necessary to register your franchise in this State. You are
required to issue the Franchise Disclosure Document required by the
FTC, 14 days prior to accepting any money or commitment from a
potential franchisee.
Arizona is a Franchising non-registration State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee.
Arkansas is a Franchising non-registration State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee.
Colorado is a Franchising non-registration State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee.
Delaware is a Franchising non-registration State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee.
District of Columbia is a Franchising non-registration Area.
. It is not necessary to register your franchise in this Area. You
are required to issue the Franchise Disclosure Document required by
the FTC, 14 days prior to accepting any money or commitment from a
potential franchisee.
Georgia is a Franchising non-registration State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee.
Idaho is a Franchising non-registration State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee.
Iowa is a Franchising non-registration State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee.
Kansas is a Franchising non-registration State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee.
Louisiana is a Franchising non-registration State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee.
Massachusetts is a Franchising non-registration State. It is
not necessary to register your franchise in this State. You are
required to issue the Franchise Disclosure Document required by the
FTC, 14 days prior to accepting any money or commitment from a
potential franchisee.
Mississippi is a Franchising non-registration State. It is
not necessary to register your franchise in this State. You are
required to issue the Franchise Disclosure Document required by the
FTC, 14 days prior to accepting any money or commitment from a
potential franchisee.
Missouri is a Franchising non-registration State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee.
Montana is a Franchising non-registration State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee.
Nevada is a Franchising non-registration State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee.
New Hampshire is a Franchising non-registration State. It is
not necessary to register your franchise in this State. You are
required to issue the Franchise Disclosure Document required by the
FTC, 14 days prior to accepting any money or commitment from a
potential franchisee.
New Jersey is a Franchising non-registration State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee.
New Mexico is a Franchising non-registration State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee.
Oklahoma is a Franchising non-registration State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee.
Pennsylvania is a Franchising non-registration State. It is
not necessary to register your franchise in this State. You are
required to issue the Franchise Disclosure Document required by the
FTC, 14 days prior to accepting any money or commitment from a
potential franchisee.
Tennessee is a Franchising non-registration State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee..
Vermont is a Franchising non-registration State. It is
not necessary to register your franchise in this State. You are
required to issue the Franchise Disclosure Document required by the
FTC, 14 days prior to accepting any money or commitment from a
potential franchisee.
West Virginia is a non-registration State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee.
Wyoming is a Franchising non-registration State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee.
Filing States
A Filing State is one that requires the Franchisor to
file and pay a fee, but does not require the Franchisor to submit
documents and seek approval to sell Franchises, like a registration
State.
Texas is a Franchising Filing State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee. There is a required filing fee to be paid in this state.
Connecticut $ 400 is a Franchising Filing State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee. There is a required filing fee to be paid in this state.
Florida $100 is a Franchising Filing State.
It is not necessary to register your franchise in this State. You
are required to issue the Franchise Disclosure Document required by
the FTC, 14 days prior to accepting any money or commitment from a
potential franchisee. There is a required filing fee to be paid in
this state.
Kentucky $0
is a Franchising Filing State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee. There is a required filing fee to be paid in this state.
Maine $ 25 is a Franchising Filing State. It
is not necessary to register your franchise in this State. You are
required to issue the Franchise Disclosure Document required by the
FTC, 14 days prior to accepting any money or commitment from a
potential franchisee. There is a required filing fee to be paid in
this state.
Nebraska $ 100
is a Franchising Filing State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee. There is a required filing fee to be paid in this state.
North Carolina
$ 250 is a Franchising Filing State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee. There is a required filing fee to be paid in this state.
South Carolina $ 100
is a Franchising Filing State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee. There is a required filing fee to be paid in this state.
Texas $ 25
is a Franchising Filing State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee. There is a required filing fee to be paid in this state.
Utah
$ 100
is a Franchising Filing State. It is not
necessary to register your franchise in this State. You are required
to issue the Franchise Disclosure Document required by the FTC, 14
days prior to accepting any money or commitment from a potential
franchisee. There is a required filing fee to be paid in this state.
