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FDD Preparation · California

California franchise registration

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

How do you register a franchise in California?

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

Three ways a sale becomes a California sale

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

The offer starts in California

Your franchise sales team or broker makes the offer from California. Sales to buyers outside the state can still be exempt, as explained below.

02

The offer is directed to California

You send it to, and it is received by, someone in California. Targeted ads and emails count.

03

The unit will operate in California

The franchised business is intended to open in California, wherever the buyer lives.

Outside the rule. A sale to a non-resident is exempt when every location of the franchised business is outside California (§31105). National publications with more than two-thirds of circulation outside California do not by themselves create a California offer (§31013(c)).

Timeline

From filing to your first California sale

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

File a complete application

FDD, exhibits, audited financials and the $1,865 fee. An incomplete file does not start the clock.

02

Review

Answer examiner comments

Changes go in pre-effective amendments, and the 30-day period runs from the last one.

03

Business day 30

Registration takes effect

At 12 p.m. California time, unless a stop order is in effect or the Department acts sooner.

04

Then

Offer and sell

Deliver the FDD at least 14 calendar days before a buyer signs or pays (FTC Rule).

05

Every year

Renew before expiry

$1,245, filed before the registration lapses. A late renewal is charged as a new registration.

Fees

California filing 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.

California franchise filing fees
FilingFeeStatute
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

Keeping a California registration in good standing

01

Amend when something material changes

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

File advertising before it runs

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

Disclose modifications to existing franchisees

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

Renew every year

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.

Who does what

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

California franchise registration questions

Still have a question? Ask a specialist, free and confidential.

Do I have to register in California if my company is in another state?

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.

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