When do not State Registration or Exemption Expire?

State laws very as to when the franchise registration expire.  Some states only require a one-time filings or exemptions.  Other state franchise registrations and exemptions must be renewed yearly. 

Annual Filing Required One Time Filing Required
   
California Connecticut
Florida Georgia
Hawaii Kentucky
Illinois Louisiana
Indiana Maine
Maryland Nebraska
Michigan *North Carolina *South Carolina
Minnesota Texas
New York  
North Dakota  
Utah  
Rhode Island  
South Dakota  
Virginia  
Washington  
Wisconsin  

* South Carolina and North Carolina allow for an exemption if franchisor has a federally registered trademark and franchisee do not purchase products from franchisor for re-sale. 

Federal law requires that all franchisors update their franchise disclosure document (FDD) 120 days from the close of their fiscal year.  For franchisors with a fiscal year that follow a calendar year ending December 31st, the FDD must be updated by April 30th


Not all states, if fact most states registrations and exemptions don’t follow the Federal April 30th date. 

Not all states, if fact most states registrations and exemptions don’t follow the Federal April 30th date. 

There are only 7 state: California, Hawaii, Illinois, New York, Minnesota, North Dakota and South Dakota follow the federal rule and expire 120 days from the close of the fiscal year (April 30th).

Expiration 120 Days from Close of Fiscal Year (April 30th) Calendar Expiration (365 days)
   
** California Florida
Hawaii Illinois
New York Indiana
Minnesota Maryland
North Dakota Michigan
South Dakota Utah
  Rhode Island
  Virginia
  Washington
  Wisconsin
   

* California registration action Expires April 20th (10 days early)


Not all states, if fact most states registrations and exemptions don’t follow the Federal April 30th date. 

There are 9 state that follow a calendar year expiration:  Florida, Indiana, Maryland, Michigan, Utah, Rhode Island, Virginia, Washington, Wisconsin.

The quandary becomes post April 30th, Federal Law requires an update of the FDD.  However, what if the state registration has not expired.  The state prohibits giving prospective franchisees the updated FDD until it has been register with the state.  But, giving prospective franchisees last year’s FDD that is registered with the state is violation of Federal law.