Whether you’re launching your first franchise or expanding an existing brand, operating a Washington D.C. franchise comes with its own set of legal considerations.
🔍 Franchisors, what state are you in? If you are considering a Washington D.C. franchise, or a franchise in one of our other practice areas, LPJ Legal is ready to work with you.
While D.C. is considered a “non-registration” jurisdiction, that doesn’t mean you’re off the hook when it comes to compliance. Here are 10 of the most common questions franchisors ask about operating in Washington D.C.—along with clear answers to help you stay compliant and confident.
đź“Ś 1. Do I need to register my franchise in Washington D.C.?
No. Washington D.C. is a non-registration state, which means you are not required to file your Franchise Disclosure Document (FDD) with any local agency before offering or selling a franchise.
đź“Ś 2. Even without registration, do I still need an FDD?
Absolutely. The FTC Franchise Rule still applies. Franchisors must provide a compliant FDD to prospective franchisees at least 14 calendar days before any agreement is signed or payment is accepted.
đź“Ś 3. Is there a local D.C. agency that oversees franchise laws?
No state-level agency oversees franchise registration in D.C., but the Office of the Attorney General enforces consumer protection laws. Violations involving fraud or misrepresentation can still be investigated and penalized under those laws.
đź“Ś 4. Are franchise advertisements regulated in D.C.?
Not specifically. Washington D.C. does not require franchisors to file or pre-approve advertising materials. However, advertisements must still be truthful and not misleading under the FTC Act and D.C.’s consumer protection laws.
📌 5. Can I sell a franchise in D.C. if I’m based out of another state?
Yes, as long as your FDD complies with federal law and you follow the 14-day disclosure rule. However, if you’re based in or also selling in a registration state (like Virginia), you’ll need to comply with those rules as well.
To ensure compliance, contact a legal expert to assist with the sale of your franchise.
đź“Ś 6. Can franchisees sue franchisors in D.C. for noncompliance?
Yes. If a franchisor fails to provide proper disclosure, misrepresents the opportunity, or engages in deceptive practices, a franchisee may file a lawsuit under federal franchise laws or D.C.’s consumer protection statutes.
đź“Ś 7. Do I need a registered agent in D.C. to operate here?
Yes. If your business entity is foreign (formed outside D.C.), you must register with the D.C. Department of Consumer and Regulatory Affairs (DCRA) and appoint a registered agent with a local D.C. address.
đź“Ś 8. Do I need to form a new business entity in D.C.?
Not necessarily. You can operate using an out-of-state entity, but you must register as a foreign entity and stay in good standing with the DCRA. That includes filing a biennial report and maintaining a registered agent.
đź“Ł How do you expand your business into another state? Learn how here.
đź“Ś 9. Should my franchise agreement include D.C.-specific clauses?
It’s smart to tailor your agreement for D.C. compliance. That includes acknowledging the lack of registration requirements, aligning with D.C.’s consumer protection laws, and ensuring venue/jurisdiction clauses make sense for both parties.
đź“Ś 10. Do I need a lawyer to franchise in Washington D.C.?
While not legally required, having a franchise attorney is strongly recommended. From drafting your FDD to structuring your agreements and business registrations, legal counsel helps you avoid costly mistakes and ensures you’re operating legally.
LPJ Legal: Helping Franchisors Thrive in Washington D.C.
At LPJ Legal, we make franchising approachable, compliant, and strategic. We help entrepreneurs:
- Draft and update their FDDs
- Navigate franchise expansions into D.C.
- Comply with local business laws
- Structure franchise agreements that protect your brand
- Avoid red flags that can trigger lawsuits
đź“Ť Serving Washington D.C., Maryland, Virginia, and Georgia đź“ž Call us at (202) 643-6211 or visit LPJLegal.com to schedule your consultation.
Franchising in D.C. doesn’t have to be complicated—when you have the right guidance. If you’re ready to launch or expand your franchise in the nation’s capital, LPJ Legal is here to help you do it right.
