Bill H.733 aims to regulate the relationship between franchisors and franchisees in Vermont by introducing a new chapter, Chapter 106, to Title 9 of the Vermont Statutes. This chapter defines key terms such as "franchise," "franchise agreement," "franchisor," and "franchisee," and establishes conditions for the termination of franchise agreements, stipulating that termination can only occur for "good cause" with prior written notice and an opportunity for the franchisee to remedy any issues. The bill also grants franchisees the right to terminate agreements without penalty under specific circumstances and ensures that franchisors cannot unreasonably deny the sale or transfer of a franchisee's business.

Furthermore, the bill includes amendments that enhance the rights and responsibilities of both parties during the sale, transfer, or assignment of a franchised business. It requires franchisors to offer payment equal to the value in a bona fide offer when exercising a right of first refusal and mandates that franchisees notify franchisors of their intent to sell, with franchisors required to respond within 60 days. The legislation emphasizes good faith dealings, prohibits unfair terms in franchise agreements, and allows franchisees to seek damages for violations. The act is set to take effect on July 1, 2026.