VT H0733

Creates new Chapter 106 in Vermont law establishing comprehensive regulations for franchise agreements between franchisors and franchisees operating in the state

Requires franchisors to provide 60 days written notice and opportunity to cure before terminating a franchise agreement, except in cases of bankruptcy, abandonment, felony conviction, or imminent public safety danger

Mandates franchisors purchase inventory, supplies, equipment, and fixtures at current market value upon lawful termination or nonrenewal; requires 180 days advance notice for nonrenewal

Prohibits non-compete agreements in franchise contracts, bans pre-dispute mandatory arbitration clauses, voids out-of-state venue provisions, and requires capital expenditures over $5,000 be justified with a validated business case showing positive ROI

Establishes franchisee rights to sell or transfer their business to qualified buyers, allows termination without penalty if franchise changes cause substantial financial hardship, and provides for court damages plus attorney's fees for violations; effective July 1, 2026