--- title: "Start a Franchise in North Dakota: Registration, Fees & Compliance 2026 | LLC Attorney" description: "What it takes to franchise a business in North Dakota in 2026: full FDD registration under the North Dakota Franchise Investment Law, administered by the Insurance Commissioner, and why the state has no relationship law at all." canonical: https://llcattorney.com/states/nd/start-a-franchise-north-dakota image: https://llcattorney.com/images/share-cover.png source_path: /states/nd/start-a-franchise-north-dakota --- Key Takeaways - North Dakota is a franchise registration state — you must register your FDD (North Dakota Franchise Investment Law, N.D.C.C. Ch. 51-19) before offering franchises here - Registration fee: $250 for the initial registration application - North Dakota has no separate franchise relationship law — termination/non-renewal terms are governed by your franchise agreement - Same-day franchise compliance filings available through LLC Attorney, at no markup on state fees Franchising your North Dakota business means clearing full FDD registration with the state's Insurance Commissioner-administered Securities Department — a NASAA-style process handled through the Electronic Filing Depository, with no relationship-law layer on top of it. This guide covers exactly what it takes to franchise in North Dakota in 2026 — the registration process and its $250 initial fee, the large/experienced-franchisor exemption path, and why North Dakota, unlike neighboring Minnesota, leaves termination and renewal entirely to your franchise agreement. YesFull FDD registration required $250Initial registration fee NoneState franchise relationship law 1 YearRegistration validity period ## The Federal Baseline: Every Franchisor Needs an FDD Before you can sell a franchise anywhere in the country, the FTC Franchise Rule requires you to prepare a Franchise Disclosure Document (FDD) and give it to prospective franchisees at least 14 days before they sign anything or pay you money. This federal requirement applies nationwide regardless of where you're based — what varies by state is whether you also have to register that FDD with a state regulator before offering franchises there. ## Does North Dakota Require Franchise Registration? Yes. North Dakota is a full franchise registration state — under §51-19-03, it is unlawful to offer or sell a franchise unless it is registered or exempt. North Dakota's franchise law is administered by the 'commissioner,' who is statutorily defined as the Insurance Commissioner (§51-19-02(4)); the Securities Department sits within the Insurance Department's organizational structure. Filing is made using the Uniform Franchise Registration Application (Form A), plus Forms B and D and the FDD, submitted through the NASAA Electronic Filing Depository (EFD), which has been mandatory since October 2021. ## North Dakota Franchise Registration Requirements - **Registering agency:** North Dakota Securities Department (within the Insurance Department, under the Insurance Commissioner) - **Form:** Uniform Franchise Registration Application (Form A), plus Forms B/D and the FDD - **Registration fee:** $250 for the initial registration application - **Processing time:** Filed electronically via the NASAA Electronic Filing Depository; registration, once effective, is valid for one year from the effective date unless the commissioner specifies otherwise. - **Renewal:** Yes — registration renews for additional one-year periods by filing a renewal statement at least 15 business days before expiration (unless that timing is waived); the renewal fee is $100. ## Are There Exemptions From North Dakota Registration? Yes — North Dakota's large/experienced-franchisor exemption under §51-19-04 applies where the franchisor has a net worth of at least $10 million on a consolidated basis (or at least $1 million and is at least 80%-owned by a corporation with a $10 million-plus net worth), has had at least 25 franchisees operating continuously over the preceding five years or has conducted the underlying business continuously for at least five years, and discloses the required information at least seven days before signing or payment. A sale by an existing franchisee for their own account, not effected by or through the franchisor, is separately exempt, and the commissioner may grant discretionary exemptions as well. Yes — even the large/experienced-franchisor exemption still requires filing a Notice of Exemption and paying a fee ($100 for the initial notice, $50 to renew it annually); you cannot rely on meeting the substantive exemption criteria without also making this filing. ## Does North Dakota Regulate Franchise Termination and Renewal? No. North Dakota has no separate franchise relationship or termination statute. The full text of Chapter 51-19's 18 sections confirms it is exclusively a registration, disclosure, and anti-fraud regime — civil liability under §51-19-12 and criminal penalties (a Class B felony) under §51-19-14 attach only to registration and disclosure violations, not to termination or non-renewal conduct. The only relationship-adjacent content is a disclosure requirement under §51-19-06, item 11, requiring the franchisor to describe limitations on the franchisee's right to sell, transfer, assign, renew, or terminate — that's a disclosure mandate, not a substantive good-cause protection. §51-19-18 also confirms a franchisee (or its employees) is not deemed an employee of the franchisor. North Dakota does not impose any statutory 'good cause' requirement for terminating, non-renewing, or transferring a franchise — Chapter 51-19 is purely a registration and disclosure regime, so termination and renewal rights are governed entirely by your franchise agreement's own provisions (with the franchisor required only to have disclosed those limitations under Item 11 of the FDD). ## How Are Franchise Fees and Royalties Taxed in North Dakota? North Dakota's corporate income tax is bracketed: 1.41% on income over $0, rising to 3.55% over $25,000 and 4.31% over $50,000. Individual income tax is near-flat: married filers and heads of household pay 1.95% on all income, while single filers pay 1.95% up to $44,725 and 2.5% above that, following the state's 2023 rate-collapse reform. Franchise fee and royalty income is taxed under these ordinary corporate and individual brackets. North Dakota does not impose sales or use tax on franchise fees or ongoing royalty payments, since these are treated as licensing income rather than sales of tangible goods — though sales tax applies normally to whatever taxable goods or services the franchised location itself sells. ## How to Franchise Your Business in North Dakota Step by Step ### If You Do It Yourself **Step 1 — Prepare your Franchise Disclosure Document (FDD).** Every franchisor nationwide needs a compliant FDD under the FTC Franchise Rule before offering or selling a franchise — this is your foundation regardless of where you're based. **Step 2 — Determine whether you need to register in North Dakota.** Yes. North Dakota is a full franchise registration state — under §51-19-03, it is unlawful to offer or sell a franchise unless it is registered or exempt. North Dakota's franchise law is administered by the 'commissioner,' who is statutorily defined as the Insurance Commissioner (§51-19-02(4)); the Securities Department sits within the Insurance Department's organizational structure. Filing is made using the Uniform Franchise Registration Application (Form A), plus Forms B and D and the FDD, submitted through the NASAA Electronic Filing Depository (EFD), which has been mandatory since October 2021. **Step 3 — File your registration or exemption paperwork.** File with North Dakota Securities Department (within the Insurance Department, under the Insurance Commissioner) using the Uniform Franchise Registration Application (Form A), plus Forms B/D and the FDD, $250 for the initial registration application. **Step 4 — Check whether an exemption applies.** Yes — North Dakota's large/experienced-franchisor exemption under §51-19-04 applies where the franchisor has a net worth of at least $10 million on a consolidated basis (or at least $1 million and is at least 80%-owned by a corporation with a $10 million-plus net worth), has had at least 25 franchisees operating continuously over the preceding five years or has conducted the underlying business continuously for at least five years, and discloses the required information at least seven days before signing or payment. A sale by an existing franchisee for their own account, not effected by or through the franchisor, is separately exempt, and the commissioner may grant discretionary exemptions as well. **Step 5 — Confirm your franchise agreement complies with any relationship law.** No. North Dakota has no separate franchise relationship or termination statute. The full text of Chapter 51-19's 18 sections confirms it is exclusively a registration, disclosure, and anti-fraud regime — civil liability under §51-19-12 and criminal penalties (a Class B felony) under §51-19-14 attach only to registration and disclosure violations, not to termination or non-renewal conduct. The only relationship-adjacent content is a disclosure requirement under §51-19-06, item 11, requiring the franchisor to describe limitations on the franchisee's right to sell, transfer, assign, renew, or terminate — that's a disclosure mandate, not a substantive good-cause protection. §51-19-18 also confirms a franchisee (or its employees) is not deemed an employee of the franchisor. **Step 6 — Rule out business opportunity law coverage.** North Dakota does not have a separate business-opportunity statute — franchise-type arrangements are captured directly by Chapter 51-19 itself, so there's no second business-opportunity filing to track alongside your franchise registration. **Step 7 — Appoint a registered agent and handle ongoing compliance.** North Dakota calls this role a "Registered Agent". Yes — registration renews for additional one-year periods by filing a renewal statement at least 15 business days before expiration (unless that timing is waived); the renewal fee is $100. **Step 8 — Watch for North Dakota-specific franchise traps.** The most common North Dakota-specific mistake is assuming a registration state must also have a protective relationship law — North Dakota doesn't. Its franchise law is registration-and-disclosure-only, so franchisors sometimes over-assume termination protections exist here the way they do in Minnesota, when in fact North Dakota leaves termination and renewal entirely to the franchise agreement. Ready to Launch Your Business in North Dakota?Follow our fast, easy process to get started right now.[Start My Business](https://app.llcattorney.com/formation?intake_type=formation) ### If LLC Attorney Does It for You 1. Submit your business details at llcattorney.com — franchise concept, fee structure, and target states. 2. LLC Attorney drafts your Franchise Disclosure Document and franchise agreement, and handles North Dakota's registration filing. 3. Receive your finished FDD and franchise agreement, plus access to flat-fee attorney consultations (no retainer) for registration or relationship-law questions as you expand. ## When Should You Talk to an Attorney About Franchising in North Dakota? Talk to an attorney before franchising your North Dakota business if you're preparing your NASAA EFD filing and want the large/experienced-franchisor exemption analyzed correctly, if you're tracking a multi-state registration renewal calendar and need North Dakota's one-year cycle synced with other states, or if you're drafting termination provisions and want them airtight given that North Dakota provides no statutory good-cause floor to fall back on. ### Is North Dakota a State Where Franchise Compliance Is More Complex? North Dakota's registration process itself is fairly standard for a NASAA-style registration state — the EFD filing, the annual renewal, and the large-franchisor exemption path all mirror what franchisors already handle in other registration states. What makes North Dakota worth flagging specifically is what it lacks: there is no relationship law here at all, so a franchisor's termination and non-renewal rights are governed purely by the franchise agreement once registration is squared away — a real contrast with neighboring Minnesota's protective §80C.14. ## What You Actually Get With LLC Attorney's North Dakota Franchise Package The part of North Dakota franchise compliance that catches people off guard isn't the registration process itself — it's assuming a registration state automatically comes with a protective relationship law the way Minnesota's does. North Dakota doesn't, so your franchise agreement's termination language carries extra weight. LLC Attorney handles the registration filing and drafts that language correctly from the start. - FDD and franchise agreement drafting, starting at $1,499. - North Dakota-specific registration, exemption, or business-opportunity-law analysis handled for you. - Franchise relationship law review so your termination and renewal terms hold up under North Dakota law. - Access to professionally trained Business Success Advisors at no charge, plus flat-fee attorney consultations (no retainer) for franchise-specific questions. North Dakota's registration process is standard for a NASAA filing state, but with no relationship law as a backstop, your franchise agreement needs to stand on its own — LLC Attorney handles both the filing and the drafting. ## Ready to Franchise Your North Dakota Business? LLC Attorney drafts your Franchise Disclosure Document and franchise agreement, handles North Dakota's registration filing, and serves as your registered agent in North Dakota. See our [full pricing](/pricing) for all service tiers. Ready to Launch Your Business in North Dakota?Follow our fast, easy process to get started right now.[Start My North Dakota Franchise](https://app.llcattorney.com/formation?intake_type=formation) ## Frequently Asked Questions ### Does North Dakota require franchise registration? ![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75) Yes. North Dakota requires full FDD registration under the North Dakota Franchise Investment Law (N.D.C.C. Ch. 51-19) before you offer or sell a franchise there, unless an exemption applies. Filings go through the NASAA Electronic Filing Depository and are administered by the Insurance Commissioner's office. ### How much does franchise registration cost in North Dakota? ![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75) $250 for the initial registration application, and $100 for the annual renewal filing. Amendments to an existing application cost $50; a Notice of Exemption costs $100 initially and $50 to renew annually. ### Are there exemptions from North Dakota's franchise registration requirement? ![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75) Yes. North Dakota's large/experienced-franchisor exemption applies to franchisors meeting specific net-worth and operating-history thresholds, but even exempt franchisors must still file a Notice of Exemption and pay a fee ($100 initially, $50 to renew) — the exemption isn't filing-free. ### Does North Dakota have a business opportunity law that could apply to my franchise? ![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75) No. North Dakota does not have a separate business-opportunity statute — franchise-type arrangements are regulated directly under the North Dakota Franchise Investment Law itself. ### Does North Dakota have a franchise relationship law affecting termination or non-renewal? ![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75) No. North Dakota has no franchise relationship or termination statute at all — Chapter 51-19 is purely a registration and disclosure regime, so termination, non-renewal, and transfer rights are governed entirely by your franchise agreement. ### Do I need an FDD to franchise my business in North Dakota? ![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75) Yes. The federal FTC Franchise Rule requires a Franchise Disclosure Document nationwide, and North Dakota's registration process requires you to file that FDD (via Form A, B, and D) as part of your registration application. ### Do I need to renew my North Dakota franchise registration? ![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75) Yes. North Dakota registration is valid for one year, and you must file a renewal statement at least 15 business days before expiration, along with a $100 renewal fee. ### How are franchise fees and royalties taxed in North Dakota? ![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75) North Dakota's corporate income tax is bracketed from 1.41% to 4.31%, and its individual income tax is near-flat at 1.95%-2.5%. North Dakota does not apply sales tax to franchise fees or royalty payments themselves. ### Does LLC Attorney help with franchise registration? ![icon](/_next/image?url=%2Fimages%2Ficons%2FfaqPlus.png&w=128&q=75) Yes. LLC Attorney drafts your Franchise Disclosure Document and franchise agreement and handles North Dakota-specific registration or filing requirements, starting at $1,499. ## Related North Dakota Resources - [North Dakota LLC Formation](/states/nd/llc-formation-north-dakota) - [North Dakota Registered Agent](/states/nd/registered-agent-north-dakota) - [North Dakota EIN Number](/states/nd/ein-number-north-dakota)