This document may be used to register an offer and sale of franchises or to register a renewal statement or annual report. The document also contains a certification statement.
Louisiana Washington Franchise Registration Application
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Multi-State
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US-4-14-STP
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FAQ
The great majority of franchise agreements contain a renewal clause that allows franchisees to require their franchise agreements be renewed. Usually, the only exceptions are those franchise agreements that are granted for 20 years or more.
If you are renewing the franchise, you need to update your business plan, review your financials, and implement any changes or improvements required by the franchisor. You also need to sign a new franchise agreement and pay any fees or charges.
Washington State is a franchise registration state. Before offering or selling a franchise in Washington, you must register your FDD with the Securities Division of the Washington State Department of Financial Institutions. The initial filing fee is $600 and the renewal fee is $100.
Louisiana is not a franchise registration state but has enacted business opportunity laws that apply to franchisors that do not have a federally registered trademark.
A renewal fee is the fee a franchisee is often asked to pay if they wish to renew their franchise agreement when the initial term or any subsequent renewed term comes to an end - provided the franchisor agrees to the renewal.
Because once the agreement ends, you will lose the right to operate the business using the franchise products and branding unless you sign another agreement. You need to make sure you understand what your rights are to renew your franchise agreement so you don't find yourself without a business!
To create a FDD, you need to collect and organize a lot of data about your franchise system, your financial statements, your operations manual, your marketing materials, and your legal documents. You may need to conduct market research, consult with experts, and update your records to ensure accuracy and completeness.
In summary, you're only required to pay your initial franchise fee when you sign your franchise agreement. This is a one-time payment that gives you a license to own and operate your franchise business for an agreed upon number of years.
