Franchise Opportunities by State

Franchise regulation varies dramatically by state. Some states require franchisors to register before selling — giving you an extra layer of scrutiny. Others rely solely on the federal FTC Franchise Rule. Know the difference before you invest.

Registration States (25)

These states require franchisors to register their FDD with a state agency before they can sell franchises. This provides an extra layer of review and protection for prospective franchisees.

CaliforniaConnecticutFloridaHawaiiIllinoisIndianaKentuckyMarylandMichiganMinnesotaNebraskaNew JerseyNew YorkNorth CarolinaNorth DakotaOhioOregonRhode IslandSouth CarolinaSouth DakotaTexasUtahVirginiaWashingtonWisconsin

Non-Registration States (26)

These states rely on the federal FTC Franchise Rule for franchise disclosure. Franchisors don't need to file with a state agency, though some have relationship laws protecting existing franchisees.

AlabamaAlaskaArizonaArkansasColoradoDelawareGeorgiaIdahoIowaKansasLouisianaMaineMassachusettsMississippiMissouriMontanaNevadaNew HampshireNew MexicoOklahomaPennsylvaniaTennesseeVermontWashington D.C.West VirginiaWyoming

All States

Alabama
FTC Rule only
Alaska
FTC Rule only
Arizona
FTC Rule only
Arkansas
FTC Rule only
California
Registration state
Colorado
FTC Rule only
Connecticut
Registration state
Delaware
FTC Rule only
Florida
Registration state
Georgia
FTC Rule only
Hawaii
Registration state
Idaho
FTC Rule only
Illinois
Registration state
Indiana
Registration state
Iowa
FTC Rule only
Kansas
FTC Rule only
Kentucky
Registration state
Louisiana
FTC Rule only
Maine
FTC Rule only
Maryland
Registration state
Massachusetts
FTC Rule only
Michigan
Registration state
Minnesota
Registration state
Mississippi
FTC Rule only
Missouri
FTC Rule only
Montana
FTC Rule only
Nebraska
Registration state
Nevada
FTC Rule only
New Hampshire
FTC Rule only
New Jersey
Registration state
New Mexico
FTC Rule only
New York
Registration state
North Carolina
Registration state
North Dakota
Registration state
Ohio
Registration state
Oklahoma
FTC Rule only
Oregon
Registration state
Pennsylvania
FTC Rule only
Rhode Island
Registration state
South Carolina
Registration state
South Dakota
Registration state
Tennessee
FTC Rule only
Texas
Registration state
Utah
Registration state
Vermont
FTC Rule only
Virginia
Registration state
Washington
Registration state
Washington D.C.
FTC Rule only
West Virginia
FTC Rule only
Wisconsin
Registration state
Wyoming
FTC Rule only

Why State Regulations Matter

The federal FTC Franchise Rule sets a floor — every franchisor in the U.S. must provide a Franchise Disclosure Document at least 14 days before you sign anything or pay any money. But 25 states go further, requiring franchisors to register their FDD with a state agency before they can sell in that state.

Registration states employ examiners who review FDDs for completeness, accuracy, and potential red flags. If a franchisor's disclosure has problems — missing financial data, unusual contract terms, unresolved litigation — the state can require corrections before the franchisor is cleared to sell. This doesn't guarantee the franchise is a good investment, but it does mean someone besides the franchisor has reviewed the paperwork.

If you're buying a franchise in a non-registration state, the FDD you receive hasn't been reviewed by any state regulator. You'll want to be especially thorough in your own due diligence — or hire a franchise attorney who can spot issues the FTC Rule doesn't catch.