What You Need to Know About Franchising
Considering starting a franchise, or maybe buying an existing one, in Connecticut? There are a few regulations that you need to be aware of in this registration state. While there aren’t specific franchise laws in Connecticut, there is the Connecticut Business Opportunity Investment Act, which governs the sale of businesses (including franchises) in the state.
What this means for you, if you have a franchise you want to sell, is that you may need to register with the Connecticut Department of Banking. If you have a primary trademark that is not registered with the United States Patent and Trademark Office (USPTO), you are required to register your franchise disclosure document (FDD). If your trademark is registered with the USPTO, you can claim a registration exemption through an exclusion notice.
In Connecticut, the initial FDD registration fee is $400 and the FDD renewal fee is $100.
Connecticut Franchise Filing Fees
$400
Initial
$100
Renewal*
$0
Amendments**
*Renewal filings must be submitted within 120 days after your fiscal year end or Connecticut may require the filing be resubmitted as a new initial filing with payment of the initial fee.
**Amendment filings must be submitted if you are making a material change to your FDD at any time before or after your initial or renewal filing is approved.
Notes
Connecticut accepts payment in the form of check or ACH. Checks should be made payable to “Treasurer, State of Connecticut”. For ACH payments, you will be required to complete and submit an ACH authorization form to us before we will submit the filing for you.
The Connecticut application required for each filing must be notarized.
If you are in your first year of franchising, Connecticut will accept Reviewed financials instead of Audited.
Advertising – Any advertising that will be used by you to target prospects in Connecticut or will be published and used only in Connecticut, must be filed with the state prior to its first use.
Connecticut accepts payment in the form of check or ACH. Checks should be made payable to “Treasurer, State of Connecticut”. For ACH payments, you will be required to complete and submit an ACH authorization form to us before we will submit the filing for you.
The Connecticut application required for each filing must be notarized.
If you are in your first year of franchising, Connecticut will accept Reviewed financials instead of Audited.
Advertising – Any advertising that will be used by you to target prospects in Connecticut or will be published and used only in Connecticut, must be filed with the state prior to its first use.
There are more than 7,000 Connecticut franchised locations, providing 85,000 jobs.
(IFA)
550 of Connecticut’s franchise locations are donut shops.
(FRANdata)
67% of Connecticut residents say franchises are part of their everyday lives.
(IFA)
State Franchise Exemptions
Flat Fee Program for Franchisors
Spadea Lignana’s CORE program for franchisors is a cost-effective and practical solution for the ongoing legal needs of franchisors, including but not limited to, FDD updates, state registrations and franchise agreement executions. Through a proprietary cloud-based system we can effectively and efficiently manage FDD Disclosures and Franchise Agreement executions for fair flat fees billed monthly. We believe that hourly billing, although necessary in certain circumstances like complex M&A deals and litigation, can weigh on the relationship between client and attorney. By coming up with a fair flat monthly fee, the uncomfortable negotiating of whether or not a 6 minute increment in your bill for replying to an email was legitimate goes away.
Attorneys Who Understand CT Franchise Law
Franchise laws vary from state to state, and it can be difficult to understand the requirements. Spadea Lignana has streamlined the process to ensure you remain compliant as you grow nationally.
We also work with franchises in Pennsylvania, New York, New Jersey, New Hampshire, Vermont, and Massachusetts.
