Vermont Franchise Law Overview
Vermont is a non-registration state, offering one of the most straightforward legal environments for franchisors. With that in mind, don’t skimp on hiring Vermont Franchise Attorneys if you’re going to start a franchise there.
This (non-registration state) classification means that the state does not have any laws requiring a franchisor to register or file its Franchise Disclosure Document (FDD) with a state administrative body.
With that in mind, the sole regulation governing the pre-sale disclosure period is the Federal Trade Commission (FTC) Franchise Rule. This federal mandate requires franchisors to provide prospective franchisees with a complete FDD at least 14 days before any franchise agreement is signed or any fees are paid.
Further simplifying the process, the state of Vermont does not have a Business Opportunity law that applies to the offer and sale of franchises. This is a significant distinction from many other states, as it means franchisors are not required to complete any form of notice filing or pay any fees to claim an exemption.
Finally, the absence of both franchise-specific registration and a business opportunity act makes Vermont a true non-registration jurisdiction, with no state-level administrative prerequisites for offering a franchise.
As to the long-term, post-sale relationship between a franchisor and a franchisee, Vermont does not have a dedicated, overarching franchise relationship law.
Consequently, there are no state statutes that specifically regulate critical aspects of the relationship, such as the conditions for termination, the right to renew, or the procedures for transferring a franchise.
Instead, these matters are governed exclusively by the terms and conditions negotiated and written into the franchise agreement. As a result, any disputes that arise during the course of the franchise relationship are resolved based on the specific language of the contract and the general principles of Vermont’s contract law.
Here is a list of franchise lawyers you can hire in Vermont
Ryan Smith & Carbine, Ltd
Mead Building 98 Merchants Row
PO Box 310
Rutland, Vermont
