CONNECTICUT FRANCHISE LAWS
Franchise Registration in Connecticut. There is no state franchise registration required in Connecticut.
Business Opportunity Exemption Registration in Connecticut. The Connecticut Business Opportunity Investment Act defines a “business opportunity” in terms broad enough to encompass most franchises. “‘Business opportunity’ means the sale or lease, or offer for sale or lease, of any product, equipment, supply or service which is sold or offered for sale to the purchaser-investor for the purpose of enabling the purchaser-investor to start a business, and in which the seller represents that: . . . (D) the seller will provide a sales program or marketing program to the purchaser-investor . . . .” However, the Connecticut Business Opportunity Act does not apply “to the sale of a marketing program made in conjunction with the licensing of a registered trademark or service mark, provided (i) such trademark or service mark has been effectively registered under federal law; and (ii) for such trademark or service mark initially registered under federal law on or after October 1, 1996, the seller files with the commissioner a copy of the trademark or service mark certificate prior to any offer or sale in the state, . . . .” Connecticut General Statutes Section 36b-61(2).
So, if the if the franchisor has a federally-registered mark, then the franchisor should file in Connecticut a copy of the federal mark registration. There is no fee for this one-time submission. Otherwise, the franchisor must comply with the Connecticut business opportunity registration and disclosure laws before selling or offering a franchise in Connecticut. The annual filing fee for business opportunity registrations in Connecticut is $400.
Franchise Disclosure in Connecticut. Connecticut has no state franchise disclosure laws. So, there are no special state disclosures required in an FDD used in Connecticut. But, if the franchisor does not have a federally-registered mark, then the franchisor must comply with the Connecticut business opportunity disclosure laws before selling or offering a franchise in Connecticut.
Franchise Relationship Law in Connecticut. The Connecticut Franchise Act includes restrictions and requirements for terminations, non-renewals, repurchase of inventory, equipment, supplies and furnishings, term of franchise agreement, and waiver, venue of disputes, and damages. Connecticut General Statutes Section 42-133e - 42-133h.
Please see important information about US federal and state franchise laws here.
We work with start-up and existing franchisors throughout the United States (and internationally). We would be delighted to discuss Connecticut franchise law with you. Please contact us for a free initial consultation about your particular situation.
Vinson Franchise Law Firm