Montana Franchise Law and Registration

Classification: Non-registration state

Registration Fee: n/a

Renewal Fee: n/a

Registration Expiration: n/a

Montana is classified as a non-registration state, as there are no currently enacted laws requiring franchisors to register with the state as a franchise or business opportunity, or to provide disclosures to franchisees beyond what is already required by the Federal Trade Commission Amended Franchise Rule, 16 C.F.R. §§ 436.1 et seq. (the “FTC Rule”), before offering or selling a franchise in Montana. There are, however, some state laws imposing duties on franchisors and providing rights to franchisees codified at Mont. Code § 61-4-201 et seq., however, these laws apply only to franchise relationships in which the franchisor manufactures, imports, or distributes new motor vehicles to franchisees to offer, sell, and service the new motor vehicles to and for the general public.

Thus, with the exception of franchisors engaged in the manufacture, import, or distribution of new motor vehicles in the state, franchisors in Montana generally only need to comply with requirements of the FTC Rule, which, among other things, requires franchisors to disclose a validly issued Franchise Disclosure Document (FDD) before entering into a franchise agreement or accepting payment from a franchisee.