FDD Preparation · California
California reviews your FDD before you can offer a single franchise there. Here is who has to register, what the Department charges, how long it takes and what keeps a registration in good standing.
$1,865
Initial registration fee (§31500)
30 business days
To automatic effectiveness (§31116)
$1,245 a year
Renewal, filed before expiry (§31121)
3 business days
Ad filing before publication (§31156)
Quick answer
File a complete application with the Department of Financial Protection and Innovation: your FDD, exhibits, audited financial statements and the $1,865 fee. If no stop order is issued, the registration takes effect on the 30th business day. Renew it every year before it expires.
Reviewed by the Fransion franchise research team · October 2026 · Source: California Corporations Code, Franchise Investment Law
Who must register
It is unlawful to offer or sell a franchise in California unless the offer is registered or exempt (§31110). Section 31013 decides when an offer counts as made in California, and it reaches franchisors headquartered anywhere.
01
Your franchise sales team or broker makes the offer from California. Sales to buyers outside the state can still be exempt, as explained below.
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You send it to, and it is received by, someone in California. Targeted ads and emails count.
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The franchised business is intended to open in California, wherever the buyer lives.
Timeline
The 30-business-day clock runs from the complete application or the last pre-effective amendment. Each round of examiner comments you answer with an amendment restarts it.
01
Day 0
FDD, exhibits, audited financials and the $1,865 fee. An incomplete file does not start the clock.
02
Review
Changes go in pre-effective amendments, and the 30-day period runs from the last one.
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Business day 30
At 12 p.m. California time, unless a stop order is in effect or the Department acts sooner.
04
Then
Deliver the FDD at least 14 calendar days before a buyer signs or pays (FTC Rule).
05
Every year
$1,245, filed before the registration lapses. A late renewal is charged as a new registration.
Fees
Set by Corporations Code §31500 and raised by Assembly Bill 137, effective July 1, 2025. Older DFPI forms still print the previous amounts, so check the form version before you file.
State fees only. Franchise attorney and auditor fees are separate and usually larger.
| Filing | Fee | Statute |
|---|---|---|
| Initial registration | $1,865 | §31500(b) |
| Annual renewal | $1,245 | §31500(c) |
| Amendment after registration is effective | $50 | §31500(d) |
| Material modification of existing franchises | $50 | §31500(e) |
| Large franchisor exemption, first notice | $1,245 | §31500(f) |
| Large franchisor exemption, each later notice | $415 | §31500(f) |
After registration
01
A change to your fees, financial condition, management or litigation history goes to the Department as an amendment ($50) before you keep selling on the old FDD.
02
Section 31156 requires a copy of a franchise advertisement to be filed at least three business days before publication, unless a rule exempts it. Plan recruitment campaigns around it.
03
Asking current franchisees to accept a material change needs a written disclosure five business days before they sign, or a five-day right to rescind (§31125).
04
File the renewal with your updated FDD before the registration expires. A lapse means you cannot offer franchises in California until a new registration is effective.
Your franchise attorney
Prepares the FDD, files the application, answers examiner comments, and files amendments and renewals.
Fransion
Plans the launch around the 30-day clock, and builds the franchise sales website and recruitment campaigns so nothing reaches California before the registration is effective.
FAQs
Still have a question? Ask a specialist, free and confidential.
Usually, yes. Under Corporations Code §31013 an offer is made in California when it originates there, when it is directed to someone in California, or when the franchised business will operate in California. A franchisor based in Texas that sells a unit in San Diego, or advertises the opportunity to California residents, needs an effective California registration or an exemption first.
Under §31116, registration becomes effective automatically at 12 p.m. California time on the 30th business day after a complete application is filed, unless a stop order is in effect, or earlier if the Department decides. Examiner comments and pre-effective amendments restart that clock from the last amendment, so a clean, complete first filing matters.
The state filing fee is $1,865 for an initial registration and $1,245 for each annual renewal, under §31500 as amended in 2025. Amendments and material modifications are $50 each. Attorney and audit costs are separate and usually larger than the filing fee.
Before the registration expires. Registrations run in one-year periods (§31121), and a renewal filed on time becomes effective on the 30th business day after a complete application. If the renewal arrives after the registration lapses, the Department treats it as a new registration and charges the initial fee.
No. You cannot offer a franchise in California until the registration is effective (§31110), and an advertisement directed to California residents is an offer. Section 31156 also requires a copy of a franchise advertisement to be filed with the Department at least three business days before it runs, unless a rule exempts it. Your attorney confirms which ads need filing.
Yes. Section 31101 exempts franchisors that meet net worth, experience, disclosure and notice-filing requirements, for example a consolidated net worth of at least $5 million on audited statements. The exemption is claimed with a notice: $1,245 for the first and $415 for each later notice.
Yes. Separately from registration, the California Franchise Relations Act (Business and Professions Code §20000 and following) limits when a franchisor can terminate or refuse to renew a franchise. Your franchise agreement should be reviewed against it.
Sources
General information, not legal advice. Your franchise attorney confirms what applies to your offering.
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