U.S. Franchise Laws by State
Navigate federal and state franchise regulations to ensure compliance when buying or selling a franchise.
Expert franchise guidance by Biz50StartUp • B Roland Sharp LLCAll franchisors in the United States must comply with the FTC Franchise Rule, which requires providing a Franchise Disclosure Document (FDD) at least 14 days before a franchisee signs any agreement or pays any money.
State Franchise Law Categories
Franchisors must register their FDD with state agencies and receive approval before offering franchises.
Requirements:
- • State agency review and approval
- • Additional disclosure requirements
- • Specific relationship provisions
- • Penalties for non-compliance
States (15):
Special Note: CT, ME, NC, SC require registration only without federally registered trademark.
Require notice filing or one-time submission with fee, but typically no state review of FDD.
Requirements:
- • One-time filing with state agency
- • Filing fee required
- • Notice to state of operations
- • No state FDD review
States (7):
No specific state-level franchise registration or filing requirements beyond federal FTC compliance.
Requirements:
- • FTC Franchise Rule compliance only
- • 14-day FDD delivery required
- • No state registration needed
- • No state filing fees
The majority of U.S. states fall into this category (~33 states)
The FDD must contain these 23 specific items to provide comprehensive information about the franchise opportunity:
For Franchisees
- Review the FDD thoroughly with a franchise attorney
- Understand state-specific relationship laws that protect you
- Verify the franchisor is compliant in your state
For Franchisors
- Register in all required states before offering franchises
- Maintain compliance with ongoing state requirements
- Work with franchise attorneys familiar with each state's laws
⚖️ Legal Counsel Recommendation
Because franchise laws are complex and vary significantly, both prospective franchisors and franchisees should seek legal counsel from a franchise attorney familiar with the specific laws of the states where they plan to do business.
Government Resources
- • FTC Franchise Rule Guide
- • State Securities Regulators
- • NASAA Franchise Resources
- • SBA Franchise Information
Professional Help
- • Find a Franchise Attorney
- • Franchise Consultants
- • International Franchise Association
- • State Bar Association Referrals