The main rules for franchising are federal. The Federal Trade Commission developed a rule requiring the use of the Franchise Disclosure Document or FDD when selling franchise businesses. In some states, the FDD must be provided to the state administrative agency so it can be reviewed for compliance with the FTC rule in addition to that states franchising rules. In some other states t franchisors are required to simply file documents.
In states where the FDD is reviewed, you can expect to wait a few months between the time when the initial filing is submitted and ultimately receiving your registration that is required before you begin selling franchises. In states where there is no review, you can start selling franchises shortly after the initial filing is submitted.
