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As one of several states in the United States that requires registration of franchise offerings, the Minnesota Department of Commerce-Securities Division is responsible for overseeing and helping to maintain the integrity of the franchise community in the State of Minnesota.
Before offering or selling a franchise in the State of California franchisors must first register their FDD with the California Department of Financial Protection and Innovation.
The following states have registration laws for franchises with a registered trademark: California. Hawaii. Illinois.
While the contents of each Item vary with each franchisor, each FDD is required to contain the following Items in this order: Item 1: The Franchisor, and any Parents, Predecessors, and Affiliates. Item 2: Business Experience. Item 3: Litigation.
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.
What Potential Business Owners Need to Know About Franchise Registration States CategoryStatesFranchise Registration StatesCalifornia, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, Hawaii, Illinois, Indiana, Virginia, Washington, Wisconsin4 more rows
Although South Carolina is not a franchise registration state, it has enacted Business Opportunity Laws that, if triggered, require the filing of a notice and, potentially, the registering of your franchise offering as a business opportunity.
Which States are Franchise Registration States? California. Maryland. Michigan. Minnesota. New York. North Dakota. Rhode Island. Hawaii.