Everything You Need to Know Before Expanding Your Franchise in the U.S.

If you’re planning to expand your franchise across the United States, understanding Franchise Registration States is non-negotiable. Unlike general business registration, franchising in the U.S. is regulated at both federal and state levels, with certain states enforcing stricter laws that directly impact your ability to offer or sell a franchise.

This guide will walk you through:

• What Franchise Registration States are

• Why they matter

• Which states are registration, filing, or non-registration states

• What steps you need to take to legally franchise in these states

If you’re serious about franchising your business in the U.S., this blog is your ultimate legal roadmap.

What Are Franchise Registration States?

Franchise Registration States are U.S. states that require franchisors to register their Franchise Disclosure Document (FDD) with a state regulatory agency before they can legally offer or sell a franchise in that state.

This registration process is in addition to the Federal Trade Commission (FTC) rules that govern franchising nationwide. The FTC requires franchisors to provide a compliant FDD, but these 14 states add another layer of regulation to protect franchise buyers.

Why Are These States Important?

Failing to comply with franchise registration laws can lead to:

• Heavy fines and penalties

• Litigation and civil liability

• Delayed or denied franchise sales

• Damage to brand reputation

Each Franchise Registration State has its own rules, fees, renewal cycles, and disclosure timelines, so it’s critical to plan ahead if you want to operate in any of them.

The 14 Franchise Registration States (as of 2025)

Here’s the full list of Franchise Registration States that require FDD registration before sales or offers:

Pro Tip: Registration must be renewed annually, and changes to your FDD (such as fee adjustments) must be filed as amendments.

Franchise Filing States vs. Registration States

It’s important not to confuse Registration States with Filing States.

• Filing States (like Florida, North Carolina, and Utah) don’t require pre-sale registration, but you still need to file a copy of your FDD or notify the state before offering franchises.

• Non-Registration/Non-Filing States have no extra requirements beyond the FTC Rule—but you’re still required to provide a valid FDD to prospective franchisees.

What Does the Registration Process Involve?

In most Franchise Registration States, the process looks like this:

1. Prepare your FDD in compliance with both FTC rules and state-specific regulations.

2. Submit your FDD and franchise application form, along with state fees (usually between $250–$750).

3. Wait for review—some states take 3–8 weeks, others longer if revisions are required.

4. Receive approval and registration number.

5. Disclose the FDD to prospects at least 14 calendar days before they sign or pay anything.

6. Renew registration annually or when material changes occur.

Common Pitfalls to Avoid

• Submitting an FDD with outdated financials

• Skipping audited financial statements (required in many states)

• Failing to update or renew on time

• Ignoring state-specific language requirements (e.g., plain English summaries)

💡 Consider working with a franchise attorney experienced in multi-state compliance.

Franchise Registration Strategy: Plan Ahead

Expanding into Franchise Registration States means extra paperwork and planning—but it also signals that you're serious about growth and transparent with investors.

Smart steps include:

• Prioritizing registration in states with the most qualified leads

• Using tech tools or a legal team to manage renewals and deadlines

• Creating a compliance calendar with all state-specific due dates

Final Thoughts

Franchise Registration States can seem like a barrier—but they’re actually a gatekeeper for legitimate, sustainable franchise growth. By staying compliant and proactive, you’ll build trust with potential franchisees and avoid legal headaches down the road.

If you plan to offer franchises in California, New York, Illinois, or any other registration state—start the process early, understand the legal landscape, and set your brand up for long-term success.