factual

Which states are currently exempt from registration requirements for Carls franchises?

Carls Franchise · 2024 FDD

Answer from 2024 FDD Document

The following states have franchise laws that require that the Franchise Disclosure Document be registered or filed with the states, or be exempt from registration: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.

This document is effective and may be used in the following states, where the document is filed, registered or exempt from registration, as of the Effective Date stated below:

Source: Item 23 — RECEIPTS (FDD pages 80–480)

What This Means (2024 FDD)

According to the 2024 FDD, Carls indicates that some states require franchise registration or filing, while others are exempt from such requirements. Specifically, the document identifies California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin as states that mandate registration or filing of the Franchise Disclosure Document (FDD) or have an exemption.

For a prospective Carls franchisee, this means that if they are looking to open a franchise in one of the listed states, Carls must register or file its FDD in that state, or qualify for an exemption. This process ensures that the franchisee receives the necessary information and protections required by state laws. The FDD is considered effective for use in these states as of the effective date stated in the document.

However, the FDD does not explicitly list which states are currently exempt from registration. To determine which states do not require registration, a prospective franchisee should consult with Carls directly or refer to Exhibit N, the State Effective Dates Page, within the FDD for a comprehensive list of states and their registration status. This information is crucial for understanding the legal and regulatory requirements for franchising in different states.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.