Proposed Amendment to Chapter 460-82 WAC — CR-101

PREPROPOSAL STATEMENT
OF INQUIRY
CODE REVISER USE ONLY
CR-101 (October 2017)
(Implements RCW 34.05.310)
Do NOT use for expedited rule making
Agency: Department of Financial Institutions, Securities Division Subject of possible rule making: The Securities Division is considering proposing amendments to Chapter 460-82 WAC to establish a rule defining certain conduct by franchise brokers that constitutes “dishonest or unethical practices in the franchise industry” as that term is used in RCW 19.100.252. Statutes authorizing the agency to adopt rules on this subject: RCW 19.100.250; 19.100.252. Reasons why rules on this subject may be needed and what they might accomplish: Pursuant to RCW 19.100.252, the director may by order “deny, suspend, or revoke registration of any franchise broker if the director finds that the order is in the public interest” and the applicant or registrant, or any of its partners, officers, or directors “[h]as engaged in dishonest or unethical practices in the franchise industry.” “Dishonest or unethical practices in the franchise industry” is not defined in the Franchise Investment Protection Act. The potential adoption of a rule providing examples of conduct that constitutes “dishonest or unethical practices in the franchise industry” would assist franchise brokers by allowing them to evaluate whether their conduct might impede their ability to be registered as a franchise broker in Washington. Identify other federal and state agencies that regulate this subject and the process coordinating the rule with these agencies: Washington and a number of states regulate franchise offerings. Washington and New York currently regulate franchise brokers operating in their states. California has passed a law to regulate franchise brokers that will take effect on July 1, 2027. The Securities Division will inform franchise regulators in New York and California that the Securities Division is considering proposing amendments to Chapter 460-82 WAC. Process for developing new rule (check all that apply):
☐ Negotiated rule making
☐ Pilot rule making
☐ Agency study
☒ Other (describe) The Securities Division is soliciting comments from interested persons and will adopt rules only after considering public comments. Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting:
(If necessary)
Name: Amy Wood Name:
Address: P.O. Box 41200, Olympia, WA 98504-1200 Address:
Phone: 360-902-8760 Phone:
Fax: 360-704-7035 Fax:
TTY: 360-664-8126 TTY:
Email: amy.wood@dfi.wa.gov Email:
Web site: https://dfi.wa.gov/securities Web site:
Other: Other:
Additional comments:

Date: October 12, 2026
Name: Faith L. Anderson
Title: Securities Administrator
Signature: