State Franchise Registration Status and Franchise Laws


Registration or Filing Required? Yes, Filing
Business Opportunity Laws? Yes

Utah is not a franchise registration state but does require an annual filing for franchisors planning to offer or sell franchises in the state. More information can be found on the Utah Department of Commerce’s Website.

What does Utah Consider a Business Opportunity?

Utah defines a business opportunity (assisted marketing plan) as a sale or lease of products, equipment or services, for more than $500, that will be used by the buyer to begin a business where the seller represents one of the following:

  1. The seller will provide or assist the buyer in finding locations vending machines, racks, display cases, or other similar devices;
  2. The seller will purchase any products made or produced by the buyer;
  3. The seller guarantees that the buyer will derive income from the business which exceeds the purchase price;
  4. The seller will refund all or part of the purchase price, or repurchase any of the products, equipment, or supplies, if the buyer is dissatisfied with the business; or
  5. The seller will provide a sales or marketing plan that allows the buyer to derive income exceeding the purchase price.

The law also excludes certain business situations from the definition of a business opportunity, including franchises that comply with the federal franchise rules.

Do I Need to Register My Franchise in Utah?

The Utah Business Opportunity Disclosure Act governs the sale of business opportunities in the state and requires those selling business opportunities to register with the state. Franchisors that are using a properly issued FDD are exempt from registering under the Act but must first submit a Notice of Exemption through their online portal and pay the $100 annual filing fee. The Notice of Exemption and fee must be submitted every year, and franchisors can begin the renewal process within 90 days of the expiration of their current exemption.


What Should I Do if I Don’t Qualify for Exemption?

If your business opportunity does not qualify for the franchise exemption, you must register your business opportunity with the Utah Department of Commerce. In order to register, you must submit the Business Opportunity Filing Form either through their online portal or by mail to the Utah Department of Commerce Division of Consumer Protection at 160 East 300 South, Second Floor, SM Box 146704, Salt Lake City, Utah 84114. Additionally, registration also requires the person registering to pay the $200 registration fee.

Registrations must be renewed annually, as well as updated anytime there is a material change to the business opportunity’s disclosure documents. The state considers a material change to be any change where there is a reasonable likelihood the buyer’s decision to purchase the business opportunity would be influenced by the change.

Fun Fact: Utah is home to Bingham Canyon Mine, the largest man-made pit in the world! They claim to be mining copper, but we all know they’re secretly trying to dig through to China.