Skip to content

Registration

Franchise registration states: how to check one

Published

There is no federal list of registration states. The number you are given depends entirely on what the person giving it decided to count.

The federal Franchise Rule governs disclosure. It says nothing about registration. Registration is a creature of state law, and the states built their franchise statutes separately, at different times, with different scope and different vocabulary.

So the question is underspecified rather than difficult. An answer to it depends on what the person answering decided to count.

Three different things get called registration

Separating them is most of the work, and doing it makes the varying counts explicable rather than suspicious.

  • Registration. A state examines a franchise offering and issues an effective registration before the franchisor may offer or sell there.
  • Filing or notice. A state requires a document, or a notice claiming an exemption, to be filed before offering, without examining or approving the offering itself.
  • Relationship law. A state regulates what happens after the sale. Where it has one, it restricts termination, non-renewal or transfer, and says nothing about registration at all.

Why this page gives no number

The three overlap, and a state may run any combination of them: a registration regime, a relationship statute, both, or only a notice requirement. A count therefore depends on which of the three the counter decided to include.

No primary source consulted for this page publishes a single figure. The Federal Trade Commission does not, because registration is not federal, and NASAA, which coordinates the registration guidelines the states work from, publishes no count either. Whatever number is in circulation goes stale as soon as a statute is amended.

So the honest answer is a method rather than a number: identify the states a particular plan actually touches, and read each one's own statute. What follows is what that reading produces, and it is more useful than a count would have been.

The verb that matters is offer

Which is why a website can be the exposure

All three statutes define the word the same way, and soliciting is inside the definition. California's reaches every attempt to dispose of, or solicitation of an offer to buy, a franchise (opens in a new tab), New York's any attempt to offer to dispose of, or solicitation of an offer to buy (opens in a new tab), Washington's every attempt or offer to dispose of or solicitation of an offer to buy (opens in a new tab). So an enquiry form that accepts a submission, or a conversation begun with somebody in one of those states, is capable of being a solicitation long before anybody signs or pays.

Advertising is not inside that definition, and two of the three handle it in a section of its own. California requires that a true copy of the advertisement be filed with the commissioner at least three business days before first publication (opens in a new tab), and Washington at least seven days before publication (opens in a new tab). Both apply to advertisements offering a franchise subject to registration, so they bite once registration does.

Between them those two things are the reason a franchisor in formation keeps its public pages informational and says plainly that nothing is being offered. It is not a disclaimer habit. It is the statutes, which put solicitation inside the definition of an offer, and in two of these three put advertising on a filing clock of its own.

A state with no registration can still require a filing

Texas has no franchise registration statute. It does have a Business Opportunity Act, and a franchise complying with the federal rule falls outside it, but the exclusion is not automatic. The Texas Secretary of State states that prior to offering for sale or selling, the seller must file an exemption notice (opens in a new tab), and that the notice does not have a term or expiration date; it is a one time filing (opens in a new tab).

No list of registration states has a column for that. Texas appears on such a list, when it appears at all, as a state with nothing to do, and a franchisor reading it that way would not have filed the notice the Secretary of State says must be filed before offering or selling.

How to check a single state properly

Start from the state's own statute rather than from anybody's summary. Find the section that makes offering or selling unlawful without registration, filing or exemption. Read that state's own definition of a franchise, because it is the definition the section turns on and it need not match the federal one. Then identify the administering agency, which the statute names. The right reader for the answer is a franchise lawyer admitted in that state.

What changes, and how often

Statutes are amended, forms and fees change, and an exemption available one year can acquire conditions the next. Anything on this page could be out of date by the time it matters to a particular plan, including every statute and agency page quoted on it.

Every claim here links to the statute or the agency it came from, so checking one is a click rather than a search. That is the only durable form a page like this can take, and it is why no count appears on it.

Limits

What this does not establish

This describes how state franchise registration works in general terms and quotes its sources in full. It is not legal advice, it is not a complete survey of any state, and it does not cover relationship statutes, franchise taxes or business licensing. Craftline has issued no Franchise Disclosure Document, is registered in no state as a franchisor, and is not offering anything anywhere. What Craftline does and does not claim to do is set out plainly on the about page, limits included.

More reading

Other guides in this section.

Have a question this did not answer?

No Franchise Disclosure Document has been issued, so there is nothing to apply for.

Franchise inquiry