FRANCHISING IN CALIFORNIA
Registration or Filing Required?
Yes (Registration)
Business Opportunity Laws?
Yes
California is most definitely a franchise registration state. The initial FDD registration fee is $675 and the FDD renewal fee is $450. Before offering or selling a franchise in the State of California, franchisors must first register its federally compliant FDD with the California Department of Financial Protection and Innovation also known as the DFPI. Registration expires 110 days after the end of the franchisor’s fiscal year end and requires annual renewal. This means that California’s renewal deadline is usually before the federal FTC Franchise Rule update deadline.
Before offering or selling a franchise in California you must file a complete application containing all required documents and information and received an effective date frim the DFPI.
A franchisor must also file an application to amend the registration when there has been any material change in the information contained in the application or made to the FDD. Franchisors are also required to file all advertisements for the sale of a franchise that are directed to California unless the advertisement has been filed with California at lease three business days prior to use. .