Franchise Glossary
Registration States
What is Registration States in franchising?
The 14 U.S. states, including California, New York, Illinois, Maryland, and Minnesota, that require franchisors to submit their FDD for state regulatory review and approval before offering or selling franchises there. This provides an additional layer of oversight beyond the federal FTC Franchise Rule. State registration does not mean the government endorses the franchise, but it does mean someone has reviewed the documents for completeness. Buyers in non-registration states have fewer regulatory safeguards.