Wisconsin Franchise Registration
If you consider starting a business or moving to Wisconsin, you are definitely on the right path. According to a report by chambers of commerce, Wisconsin produced nine cities on that coveted list out of all the small towns in different states around the country. With a ranking of 21st highest income in the United States, the state’s GDP was close to $350b. Wisconsin is considered among the top states in education, fiscal stability, and high opportunities for businesses. In addition, the state has good security and a top-notch health system making Wisconsin a place where most people and businesses thrive.
Wisconsin requires all franchisors to register before offering or selling a franchise. This means that you are required to register your Franchise Disclosure Document (FDD) with the Securities Division of the Wisconsin State Department of Financial Institutions.
The state has embraced technology and only allows online FDD registration, and renewal which takes place annually. The renewal can take place earlier if there are any changes to your Franchise Disclosure Document. The filing fee for your FDD is $400, which applies to all submissions and applications to the state of Wisconsin regardless of whether your filing is an initial registration, annual renewal, or update.
The Securities Division of the Wisconsin State Department of Financial Institutions regulates franchises as mandated by the Wisconsin Franchise Investment Law. The Division is also in charge of the FDD registration and application, which is done through an online system. Since the application and filing of FDD are done electronically with the Securities Division, you can accomplish this by logging in to the Division’s e-filing portal. If you register or file your FDD by mail, you risk having your Franchise Disclosure Document registration or renewal rejected. Any inquiries to the Division regarding FDD registration are done via the official email address.
hen submitting your franchise registration application online through the Division’s e-filing portal, you must include: The Franchise Disclosure Document, signed uniform consent to service of process, payment of filing fee through credit card, and disclosure of relevant filing information.
The information required to be disclosed: the legal franchise name, the trade name of the franchise, principal business address of your franchise, a list of potential states you plan to register your FDD, and the personal details for the person responsible for your registration application.
Wisconsin differs from the other Franchise Registration States since registration occurs automatically during the filing of the FDD.
This means that there’s no waiting period or formal review process conducted by the state. However, as is with all states that require registration, it is up to you to ensure that your FDD is compliant with both Franchise and State franchise laws. The state requires all franchises to renew their FDD annually and not less than 120 days after the end of their financial year. If any material change in the disclosures contained in the FDD, you need to file and register your updated FDD.
For more information on how to register your franchise in Wisconsin, visit the Franchise Marketing Systems site: https://www.fmsfranchise.com/learn/resources/state-guidelines/