Connecticut
Franchise Registration
Connecticut
Connecticut is not a franchise registration state but does require either a Business Opportunity Trademark Exemption or a Business Opportunity filing prior to offering or selling franchises or business opportunities in the state.
Connecticut Franchise Laws
Connecticut defines a Franchise as an oral or written agreement or arrangement in which:
(1) a franchisee is granted the right to engage in the business of offering, selling or distributing goods or services under a marketing plan or system prescribed in substantial part by a franchisor, and
(2) the operation of the franchisee’s business pursuant to such plan or system is substantially associated with the franchisor’s trademark, service mark, trade name, logotype, advertising or other commercial symbol designating the franchisor or its affiliate, and includes any agreement between a manufacturer, refiner or producer and a distributor, wholesaler or jobber, between a manufacturer, refiner or producer and a retailer, or between a distributor, wholesaler or jobber and a retailer. Conn. Gen. Stat. § 42-133e.
Connecticut Franchise Registration Filing
Connecticut is not a Franchise Registration State; however, many franchises qualify as Business Opportunities and therefore must comply with Connecticut’s Business Opportunity laws and filing requirements.
In addition, a franchisor must have a current FTC-compliant FDD to offer or sell franchises in Connecticut and comply with the Franchise Rule disclosure timing provisions.
Connecticut Franchise Relationships and Termination Laws
Connecticut has laws which make it unlawful for a franchisor to terminate or fail to renew a franchise except for good cause. In addition, the franchisor shall give the franchisee 60 days notice of termination in many situations. An additional notification period may be required in most situations. Conn. Gen. Stat. § 43-133f.
Connecticut Business Opportunity Laws
Connecticut’s Business Opportunity Laws define a “Business opportunity” as the offer or sale of any product, equipment, supply, or service that is sold or offered for sale, for a fee that does not exceed two hundred dollars (Conn. Gen. Stat. § 36b-65), to the purchaser-investor for the purpose of enabling the purchaser-investor to start a business, and in which the seller represents that:
(A) The seller will provide locations or assist the purchaser-investor in finding locations for the use or operation of vending machines, racks, display cases or other similar devices, or currency-operated amusement machines or devices, or any other similar device; or
(B) the seller will purchase any or all products made, produced, fabricated, grown, bred or modified by the purchaser-investor using, in whole or in part, the supplies, services or chattels sold to the purchaser-investor; or
(C) the seller guarantees, either conditionally or unconditionally, that the purchaser-investor will derive income from the business opportunity, or that the seller will refund all or part of the price paid for the business opportunity or repurchase any of the products, equipment, supplies or chattels supplied by the seller, if the purchaser-investor is unsatisfied with the business opportunity; or
(D) the seller will provide a sales program or marketing program to the purchaser-investor, provided sections 36b-60 to 36b-80, inclusive, shall 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, provided further that failure to file such certificate shall not, in and of itself, preclude reliance on this exclusion.
Conn. Gen. Stat. § 36b-61d.
Connecticut Trademark Exemption from
Business Opportunity Laws
Franchises with federally registered trademarks are excluded from the Business Opportunity Laws if the franchisor files a trademark exemption. Conn. Gen. Stat. § 36b-61d.
Requirements for Submitting a Trademark Exemption
The trademark exemption can be claimed by sending a request to Connecticut that the franchisor is claiming the exemption along with the following information and attachments:
- Legal name and address of the franchise company;
- State of existence of the franchise company and date of existence;
- Copy of the trademark;
- Trademark License (if applicable)
There is no fee to claim the exemption and the filing is required only one-time unless there is a change to the franchisor’s principal trademark.
Connecticut Business Opportunity Requirements
Without a trademark exemption, the offer or sale of a business opportunity in Connecticut requires registration with the state. Conn. Gen. Stat. § 36b-62.
The filing fee is $400 and must be accompanied by the following documents:
- Application Form
- Disclosure Document
- Consent to Services of Process
- Copies of advertising or promotional materials
- Bond (if applicable)
This registration must be renewed annually and the renewal fee is $100.
More information about Connecticut's
Business Opportunity Laws
You can learn more about Connecticut’s Business Opportunity requirements at this page:
Business Opportunity and Registration Guidelines
Understanding Business Opportunity Investments
Registered Business Opportunities, Trademarks, or Services
If you offer a business opportunity in Connecticut, we can help you determine if, and how, your company must comply with Connecticut’s Business Opportunity Laws.
Want to learn more about our franchise services and franchising in Connecticut? Contact Us or call (757)-263-4596 to schedule a consultation. You can also visit our interactive map to learn more about other state franchise laws.
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