Utah is categorized as a non-registration state. This means that franchisors are not obligated to register or file their Franchise Disclosure Document (FDD) with any state agency before they can legally offer or sell franchises within its borders. And if you do want to franchise in the state, be sure to hire Utah Franchise Attorneys.
With that in mind, you need to know that the governing regulation for the pre-sale disclosure process is the Federal Trade Commission (FTC) Franchise Rule. It’s a federal law that requires franchisors to furnish prospective franchisees with the FDD at least 14 days prior to the signing of any agreement or the exchange of any money.
However, Utah has a Business Opportunity Disclosure Act that directly impacts franchisors operating in the state.
And while the Act offers an exemption for most franchise systems, this exemption is not automatically granted. To qualify, a franchisor must complete an annual notice filing with the Utah Division of Consumer Protection and pay the required fee. This filing requirement establishes a mandatory administrative step at the state level, placing Utah in a category of states that, while not requiring full registration, still mandate a formal notice.
For the ongoing, post-sale relationship between the parties, Utah law does not include a specific franchise relationship statute. This absence of dedicated legislation means there are no state laws that dictate the terms for critical events like termination, renewal, or the transfer of a franchise.
That means that the rights and obligations of both the franchisor and the franchisee in these situations are determined exclusively by the specific provisions written into the franchise agreement.
Therefore, any disputes that arise concerning the continuation or conclusion of the franchise relationship are adjudicated based on the contract’s language and the general principles of Utah’s contract law.
Here is a list of franchise lawyers you can hire in Utah
Ryan D. Smith / Peak Franchise Law
222 S. Main Street, Suite 500
Salt Lake City, Utah
Matthew Morrison / Morrison Law Office
1887 N 270 E
Orem, Utah
Ryan C. Morrison
101 S 200 E #700
Salt Lake City, Utah
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Joel Libava, President.
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