- Front Page
- Biz Tools
Many states have implemented their own individual franchise rules and disclosure requirements. A minority of states, 13, has franchise filing requirements. 15 states have led franchising regulation by adopting more stringent standards of the UFOC format rather than the federal Franchise Rule.
A company is only authorized to sell franchises in the following states when it successfully registers there.
Since franchisors who want to sell in these 13 states must use the tougher UFOC, franchisors want to minimize their disclosure efforts by issuing their prepared UFOC in 35 states. However, a franchisor in these states is only required to provide a disclosure document compliant with the federal Franchise Rule. No record of these documents need be registered with the State.