Washington State Department of Financial Institutions

Franchise Registration and Exemption

New! Interim franchise disclosure under the new FTC Franchise Rule

The offering of franchises in Washington is governed by RCW 19.100."Franchise" is defined in RCW 19.100.010(4) as:
 
(a) An agreement, expressed or implied, oral or written, by which:
    (i) A person is granted the right to engage in the business of offering, selling, or distributing goods or services under a marketing plan prescribed or suggested in substantial part by the grantor or its affiliate;
    (ii) The operation of the business is substantially associated with a trademark, service mark, trade name, advertising, or other commercial symbol designating, owned by, or licensed by the grantor or its affiliate; and
    (iii) The person pays, agrees to pay, or is required to pay, directly or indirectly, a franchise fee.

Franchisors must register their franchise offerings prior to offering in Washington, unless the offering qualifies for one of the exemptions contained in RCW 19.100.030. Filing requirements are summarized in the Frequently Asked Questions Section.

Franchise offerings may also be registered through the Coordinated Review - FRAN program.  For more information, please consult the Coordinated Review website.

If you have questions about the requirements for franchising in Washington, please contact Brad Ferber or Carol Kelsey or call 360-902-8760.

If you would like to check to see whether a particular franchise has filed with the Division, or would like copies of their franchise documents, please contact Carol Kelsey or call 360-902-8760.

Laws, Rules & Resources

RCW 19.100 - Washington Franchise Investment Protection Act
WAC 460-80 - Franchise Rules
WAC 460-82 - Franchise Broker Rule
Franchise FAQs
Franchise Act Policy Statements
Franchise Act Interpretive Statements
NASAA Guidelines - Preparing the Uniform Franchise Offering Circular

Forms

The forms available on these pages are in Adobe PDF format. You must have Acrobat Reader on your browser in order to see or download these forms.

Forms marked with the * can be opened in Acrobat Reader and filled out right on your computer. When you open the form in Acrobat, click on the hand button on the Acrobat toolbar and that will activate the edit mode. Tab between fields, except for check boxes and radio buttons where you will have to use the mouse. However, unless you have the full version of Adobe Acrobat Writer, you will not be able to save your form to work on later.

Franchise Registration Application *
Sample Washington Franchise Agreement Addendum *  
Franchise Impound Agreement *
Guarantee of Performance *
Salesman Disclosure Form *
Annual Notice of Claim of Exemption *
Franchise Broker License Application

Interim Franchise Disclosure Under the New FTC Franchise Rule

Since 1993, most franchisors have prepared their franchise disclosure documents under the Uniform Franchise Offering Circular (“UFOC”) Guidelines promulgated by the North American Securities Administrators Association (“NASAA”). Earlier this year, the Federal Trade Commission (“FTC”) adopted a new Franchise Rule that sets forth new requirements for franchise disclosure documents. Under federal law, franchisors may follow the new franchise disclosure requirements starting July 1, 2007 and will be required to follow the new rule starting July 1, 2008. NASAA is developing a replacement for the UFOC guidelines in light of the new FTC rule and has recommended that states that require franchise registration accept franchise disclosure documents prepared under the new FTC Franchise Rule with some modifications. The Securities Division encourages franchisors to prepare their franchise disclosure documents under the new FTC Franchise Rule with the modifications suggested by NASAA. For more information, please consult the interim state guidelines (PDF) available on NASAA's website.

Publications

Buying A Business Opportunity
Avoiding Business Opportunity Fraud

Franchise Act Policy Statements

Policy Statement - FPS-01
Policy Statement - FPS-02
Policy Statement - FPS-03
Policy Statement - FPS-04
Policy Statement - FPS-05
Policy Statement - FPS-06
Policy Statement - FPS-07

Franchise Act Interpretive Statements

Interpretive Statements

Other Sites of Interest

Federal Trade Commission
International Franchise Association
Washington State Attorney General's Office
National Fraud Center
Better Business Bureau