FRANCHISING IN CONNECTICUT
Registration or Filing Required?
Yes (Business Opportunity Registration)
Business Opportunity Laws?
Yes
Connecticut is a franchise filing state for franchisors with a federally registered trademark and is a franchise registration state for franchisors without a federally registered trademark. The Connecticut Business Opportunity Investment Act governs the offer and sale of business opportunities and requires that business opportunities be registered with the Connecticut Department of Banking. As a franchisor, if your primary trademark is registered with the United States Patent and Trademark Office (USPTO) then you may claim an exemption from the registration of your FDD through the filing of an exclusion notice. If your primary trademark is not registered with the USPTO, then you must register with Connecticut.
If you do not have a registered trademark, you must register with the Department of Banking including an submitting an Application to Register Business Opportunity; a Consent to Service of Process; a copy of your FDD; Financial Statements: including balance sheets, income statements and statements of changes (the state may require audited financial statements if the franchisor has been in business for less than a year); copies of advertisements; copies of any other contracts related to the business opportunity; proof of financial assurance if required (usually a bond or proof of trust account); and a $400 registration fee. Connecticut will also require additional disclosure be made in your FDD.
If you do have a registered trademark, there is no filing fee but your exclusion notice must be sent to Connecticut and will not be effective until it is acknowledged and granted by the Department of Banking. The exclusion notice is a one-time filing unless there is a material change in your franchise offering.