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State Regulators Declare Registration Do's and Don'ts

Attorneys seeking to obtain or renew franchise registration in state-registration states are always interested in how to get those state registrations quickly and with the least amount of back-and-forth with regulators. At the “Ask the Regulators” session at the IFA's 2010 Legal Symposium, representatives of three registration states offered suggestions about how to make the process run more smoothly.

Timothy O'Brien, chief examiner, Virginia Division of Securities & Retail Franchising, said that new franchise registrations were down about 25% in 2009, reflecting fallout from the economic downturn. “New franchise applications had been growing at 5% to 10% per year, but the 25% drop last year knocked us back to the levels we had seen in 2004,” he said. “Renewals were down about 6.5%. This year, we're seeing a small uptick from that level.”

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