Utah
Franchise Registration
Utah
Utah is not a franchise registration state but does require either a Business Opportunity Franchise Exemption or a Business Opportunity disclosure document prior to offering or selling franchises or business opportunities in the state.
Utah Franchise Laws
Utah is not a Franchise Registration State; however, many franchises qualify as Business Opportunities and, therefore, must comply with Utah’s Business Opportunity Franchisor Exemption filing requirements.
In addition, a franchisor must have a current FTC-compliant FDD to offer or sell franchises in Utah and comply with the Franchise Rule disclosure timing provisions.
Utah Franchise Relationships and Termination Laws
There are no franchise laws that specifically govern the franchise relationship or termination of a franchisee in Utah.
Utah Business Opportunity Laws
Florida’s Business Opportunity Laws define a “Business opportunity” as the sale or lease of any products, equipment, supplies, or services that are sold or leased to a purchaser to enable the purchaser to start a business for which the purchaser is required to pay an initial fee or sum of money which exceeds $500 to the seller, and in which the seller represents:
1) That the seller or person or entity affiliated with or referred by the seller will provide locations or assist the purchaser in finding locations for the use or operation of vending machines, racks, display cases, currency or card operated equipment, or other similar devices or currency-operated amusement machines or devices on premises neither owned nor leased by the purchaser or seller;
2) That the seller will purchase any or all products made, produced, fabricated, grown, bred, or modified by the purchaser using in whole or in part the supplies, services, or chattels sold to the purchaser;
3) That the seller guarantees that the purchaser will derive income from the business opportunity which exceeds the price paid or rent charged for the business opportunity or that the seller will refund all or part of the price paid or rent charged for the business opportunity, or will repurchase any of the products, equipment, supplies, or chattels supplied by the seller, if the purchaser is unsatisfied with the business opportunity; or
4) That the seller will provide a sales program or marketing program that will enable the purchaser to derive income from the business opportunity, except that this paragraph does not apply to the sale of a sales program or marketing program made in conjunction with the licensing of a trademark or service mark that is registered under the laws of any state or of the United States if the seller requires use of the trademark or service mark in the sales agreement.
Fla. Stat. Ann. § 559.801
Utah 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.
Requirements for Submitting a Trademark Exemption
The trademark exemption can be claimed by sending a request to Utah 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.
Utah Business Opportunity Requirements
The offer or sale of a business opportunity in Florida no longer requires registration with the state. However, an appropriate business opportunity disclosure statement and bond is required. Fla. Stat. Ann. § § 559.803 & 559.807.
More information about Utah's Business Opportunity Laws
You can learn more about Utah’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 Utah, we can help you determine if, and how, your company must comply with Utah’s Business Opportunity Laws.
If you would like to learn more about our franchise services and franchise compliance in Utah, contact us or call (757) 263-4596 to schedule a consultation. You can also visit our interactive map to explore franchise laws in other states.
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