As of July 1, 2025, California has dramatically increased its franchise registration and exemption filing fees, creating new cost considerations for franchisors planning to expand into the largest franchise market in the U.S.
But while compliance just got more expensive, California remains a critical opportunity state—and one where territory mapping, data-driven growth, and timely filings are more important than ever.
At Zors, we help franchisors map franchise territories smarter, file faster, and scale more confidently, even in highly regulated environments like California.
Effective July 1, 2025, California significantly increased its franchise filing fees under the California Corporations Code. The most common filing types are now priced as follows:
Initial Franchise Registration (Section 31111):
New fee: $1,865 (formerly $675)
Annual Renewal Filing (Section 31121):
New fee: $1,245 (formerly $450)
Initial Notice of Exemption (Sections 31101, 31104, 31106, 31108, or 31109):
New fee: $1,245 (formerly $450)
Consecutive Subsequent Notice of Exemption:
New fee: $415 (formerly $150)
Notice of Violation (Sections 31303 or 31304):
New fee: $1,865 (formerly $675)
⚠️ While these fees reflect steep increases—nearly triple in some cases—not all filing types were affected.
Despite significant increases to registration, renewal, and exemption fees, several California franchise filing fees remain the same:
Pre-Effective Amendment: $0
Post-Effective Amendment (Section 31123): $50
Material Modification (Section 31125): $50
Advertisement Filing (Section 31156): $0
Negotiated Sales (Rule 310.100.2): $0
Negotiated Sales (Section 31109.1 / Rule 310.100.4): $0
Release of Impound (Rule 310.113.4): $0
💡 These unchanged fees are typically associated with administrative or post-approval changes and special-case transactions rather than initial entry or broad exemption filings.
Why will franchisors absorb these fees? Because California is simply too big to ignore.
Population: Over 39 million residents
Economy: The 5th largest economy in the world, with a 2025 GDP estimated over $4.2 trillion
Franchise Potential: If you were to draw territories with just 100,000 people each, California alone could support 390 territories.
At Zors, our territory mapping tool helps you visualize and break down the entire state using demographic and population data, so you can plan scalable and legally compliant growth. Whether you divide by ZIP code, census tract, county, or radius, Zors shows you:
Total population
Household income
Franchise saturation
Radius overlap
Key development areas
💡 Tip: Use Zors to preview how a California territory fits into your nationwide growth strategy—before you invest in filings or sales.
California requires all franchisors to register or file exemptions before offering or selling franchises in the state. And there’s a catch:
All registrations expire annually on April 20 (Most registrations are either for 12 months or expire 120 days after the fiscal year end following the federal Franchise Rule)
If you miss the April 20 deadline—even by a day—you must pay a new initial registration fee for the late renewal
That means paying the full $1,865 initial fee again (not the $1,245 renewal fee)
Zors helps track key compliance dates, including registration expirations, FDD updates, and territory agreements, so you can stay in good standing and avoid expensive re-filings.
California is known for its robust legal protections for franchisees, with strict disclosure requirements, limits on restrictive covenants, and active oversight from the Department of Financial Protection and Innovation (DFPI). For franchisors, this creates a higher compliance burden—but also a healthier, more transparent ecosystem that attracts serious investors and multi-unit operators.
Despite the legal friction, California remains one of the most lucrative franchise markets in the world. Franchisors willing to invest in smart planning, strong systems, and strategic filings will continue to find outsized opportunity here.
Further - while it may seem counterintuitive, the laws help franchisees mitigate their risk and that can make franchising an easier decision.
At Zors, we don’t just help you build territories—we help you build your franchise.
📌 Map and visualize California expansion
🔒 Track compliance milestones and fees
📊 Analyze market saturation and opportunity zones
📁 Collaborate with legal counsel on document management and filing
Zors is designed by franchise attorneys and growth strategists to give you one platform for everything from mapping to legal management to sales pipeline visibility.
Learn more about Zors franchise intelligence platform features and check out our blog explaining how Zors improves franchise approval tracking with color-coded map status
📅 Book a demo to see how we can help you make the most of your California expansion—while staying on the right side of regulation.
👉 Schedule a Demo
📩 info@zors.ai
Disclaimer: This article is for informational purposes only and does not constitute legal advice. California franchise law is complex and constantly evolving. Franchisors should consult qualified counsel regarding their registration obligations and strategy.
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