Utah Franchise Registration

Utah Franchise Registration

 

Utah Franchise Registration 

Utah hails as the 30th most populous state, boasting a population of 3.206 million as of 2019 and has grown significantly with a strong business environment and excellent business environment making it an excellent choice for franchising. Not only does Utah capture a huge piece of the tourist market due to its booming skiing industry and eye-catching rocky terrain, but has a highly diversified economy. Transportation, mining, and IT are just a few of the sectors that have continued to attract residents to this beautiful state. With its economic stability and well educated workforce, Utah makes an excellent choice to set up shop for a franchise.  Utah is in many ways one of the better franchise markets in the U.S. that seems to go unnoticed by many brands as a target area for growth.   

Many states, including Utah, require proof of exemption prior to commencing the sale of a franchise in the state. As long as franchisors are in compliance with the FTC’s (Federal Trade Commission) rules, they can file a notice with the Division of Consumer Protection through the Utah Department of Commerce stating they meet the FTC guidelines. To meet the FTC rules, every franchisor must have a compliant Franchise Disclosure Document. Franchisors must file this exemption notice annually and pay a fee each year. The fee is $100. Utah allows for the renewal process to begin as early as 90 days before the expiration date of the prior year’s notice. 

For all franchisors headquartered and running business from Utah, they must be appropriately filed as a business. Utah business registration is a straightforward process of which all businesses, including franchisees that are starting their business in the state, are required to do. The good news? The state has a OneStop Online Business Registration system that enables registration for your business with the Utah State Tax Commission, the Utah Labor Commission, the Utah Department of Commerce, the Utah Department of Workforce Services and the Utah Department of Environmental Quality. Following registration through this system, all pertinent information is sent to the franchisor or franchise owner, streamlining the business license application process through the appropriate local municipality.  

Utah is one of two states that also requires an EIN number to be set up prior to registering a business in the state (Florida is the second). Once an EIN is acquired, simply set up a bank account with initial funds to represent the franchise entity’s opening balance sheet.   

When you are approved for Utah Franchise Registration, you will be able to see the name of your franchise entity here on the Utah registration search page: https://dcp.utah.gov/registered.html 

For more information on other state registration guidelines, visit https://www.fmsfranchise.com/about-franchising/guidelines/stateregulations/  

[1] U.S. Census Bereau. https://www.census.gov/glossary/#term_Populationestimates 

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