At
the beginning of every year, as well as whenever a "material"
change occurs within a franchise, the respective franchisor
is obligated to update its franchise disclosure -- that
is, its Uniform Franchise Offering Circular (UFOC).
Generally, a UFOC must be updated either (a) earlier
of 90 days after the end of the Franchisor's fiscal
year or (b) the expiration date as specified in the
various states' orders of effectiveness.
The
process of updating and revising your franchise disclosure
document provides you with the opportunity to seriously
consider what changes you might want to implement for
the coming year, which may include modifications to
your franchise agreements, adjustments to your support
or training programs, or expansion into new states that
may require pre-sale registration.
The
15 registration states noted below require pre-sale
registration through a designated state agency. Pre-sale
registration is designed to prevent investment scams
and irresponsible business practices by forcing the
franchisor to disclose all important data before the
sale of a franchise.
The
following table lists the regulatory agencies for each
registration state, as well as corresponding contact
information.
State
Regulation Agencies
| State |
Agency |
Telephone
Number |
| California
|
Department
of Corporations |
(213)
576-7500 |
| Hawaii |
Department
of Commerce and Consumer Affairs, Securities Compliance |
(808)
586-2722 |
| Illinois |
Attorney
General’s Office, Franchise Division |
(217)
782-1090 |
| Indiana |
Securities
Commissioner, Securities Division |
(317)
232-6681 |
| Maryland |
Attorney
General’s Office, Securities Division |
(410)
576-6360 |
| Michigan |
Attorney
General’s Office, Consumer Protection Division
Antitrust and Franchise Unit |
(517)
373-7117 |
| Minnesota |
Minnesota
Department of Commerce |
(612)
296-4026 |
| New
York |
Department
of Law |
(212)
416-8200 |
| North
Dakota |
North
Dakota Office of the Securities Commissioner |
(701)
328-2910 |
| Oregon |
Dept.
of Consumer and Business Services, Finance and
Corporate Securities Division |
(503)
378-4387 |
| Rhode
Island |
Division
of Securities |
(401)
222-3048 |
| South
Dakota |
Division
of Securities |
(605)
773-4823 |
| Virginia |
State
Corporation Commission, Division Of Securities
and Retail Franchising |
(804)
371-9051 |
| Washington |
Department
of Financial Institutions,
Securities Division |
(360)
902-8760 |
| Wisconsin
|
Wisconsin
Securities Commission |
(608)
261-9555
|
Registration
fees vary significantly from state to state, as demonstrated
by the following table.
State
Registration Fees
| State |
Registration
Fee |
Renewal
Fee |
Amendment
Fee |
Exemption/
Renewal |
| California
|
$675 |
$450 |
$50
|
$450/$150 |
| Hawaii |
$250 |
$250 |
$250 |
N/A |
| Illinois |
$500 |
$100 |
$25/$100 |
N/A |
| Indiana |
$500 |
$250 |
$50
|
$50 |
| Maryland |
$500
|
$250 |
$100 |
$250 |
| Michigan |
$250 |
N/A
|
N/A
|
N/A
|
| Minnesota |
$400 |
$200 |
$100
|
N/A |
| New
York |
$750 |
$150 |
$150 |
N/A |
| North
Dakota |
$250 |
$100 |
$50
|
$100/$50 |
| Oregon |
N/A |
N/A |
N/A |
N/A |
| Rhode
Island |
$500
|
$250
|
$100
|
$300 |
| South
Dakota |
$250 |
$100 |
$50 |
N/A |
| Virginia |
$500
|
$250
|
$100
|
N/A |
| Washington |
$600
|
$100
|
$100
|
$100/$100 |
| Wisconsin
|
$400 |
N/A
|
$200 |
$200 |
Legend |
Requires
filing of an “annual report.” |
Requires
$100 fee for a “material change.” |
Fee
is for opinion confirming exemption. |
Requires
filing of annual “notice of franchise
offering.” |
Prescribes
filing of “annual report.” |
Requires
annual registration. |
|
Fees
are subject to change. |
|
