State Guide: Franchise Disclosure Laws
Created by FindLaw's team of legal writers and editors | Last reviewed May 22, 2024
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If you live in a state with specific franchise disclosure laws, this article will help you get in contact with the specific agency in your state that administers and enforces the laws. Fifteen states have franchise investment laws that require franchisors to provide pre-sale disclosures, known as "offering circulars," to potential purchasers. Thirteen of these state laws treat the sale of a franchise like the sale of a security. They typically prohibit the offer or sale of a franchise within their state until a franchise offering circular has been filed on the public record with, and registered by, a designated state agency. Two of the fifteen states do not require a filing of offering circulars, as noted in the list of state offices below.
These state laws give franchise purchasers important legal rights, including the right to bring private lawsuits for violation of the state disclosure requirements. Potential franchise purchasers who reside in these states are encouraged to contact their state franchise law administrators for additional information about the protection these laws provide.
STATE |
FRANCHISE LAW ADMINISTRATOR |
| California (filing required) |
Franchise Division |
| Hawaii (filing required) |
Franchise & Securities |
| Illinois (filing required) |
Franchise Division |
| Indiana (filing required) |
Franchise Division |
| Maryland (filing required) |
Franchise Office |
| Michigan (only notice required) |
Consumer Protection Division |
| Minnesota (filing required) |
Franchise Division |
| New York (filing required) |
Franchise & Securities Division |
| North Dakota (filing required) |
Franchise Division |
| Oregon (no filing) |
Corporate Securities Section |
| Rhode Island (filing required) |
Franchise Office |
| South Dakota (filing required) |
Franchise Office |
| Virginia (filing required) |
Franchise Office |
| Washington (filing required) |
The Department of Financial Institutions |
| Wisconsin (filing required) |
Franchise Office |
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Speak to an Attorney about Franchise Disclosure Laws in your State
Many specific franchise disclosure laws are alive and well in numerous states throughout the country. Call a business law attorney today to help you figure out the best way to comply with the laws and requirements in your jurisdiction.
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