New York Franchise Laws
How to Find State Specific Franchise Laws for New York
The first step to running a franchise business in New York should be to learn about the state's specific franchise laws. Luckily, New York state makes franchise law information readily available online.
1. Understand that New York, like 14 other U.S. states, requires franchisers to supply franchisees with a Uniform Franchise Circular Offer, or UFOC. The UFOC is classified as a securities document, which means it must adhere to strict standards set by the Federal Trade Commission.
2. Know that disclosed information must include earnings statements, trademark ownership, and other impor tant aspects of the franchise. Read the full requirements at the North American Securities Administrators Association (NASAA) website (see Resources below).
3. Know that in New York, the UFOC document must be registered with the state's Franchise & Securities Division. The UFOC must be received by the franchisee before a Franchise Agreement can be signed.
4. Pull up the Franchise Page of the New York Attorney General website (see Resources below). Select the "Supplemental Information" link under the Franchise Forms heading. You'll see list of all the additional information you would need to gather in order to register your franchise in New York.
5. Select any of the other links under the Franchise Forms heading to access PDF files containing franchise forms and instructions. Scroll down the Attorney General's franchise page to view a list of franchise orga nization links recommended by New York.
6. Click on the "New York State Franchise Act" link under the Franchise Laws and Regulations heading. This will forward you another website to view the entire act as codified.
7. Print out the latest version of the New York's franchise specific rules and regulations from the Attorney General website.
8. Contact the New York Franchise & Securities Division directly at the State Department of Law, 120 Broad way, 23rd Floor, New York NY 10271. You can reach the office by phone at (212) 416-8211.
Tips & Warnings
If you are unsure how a specific franchise law operates or whether it is applicable to you, you may wish to con sult a franchise law attorney. A New York franchise lawyer can help you prepare and compile the required regis tration documents in the most efficient manner.
Opening a franchise business in New York state subjects you to the state's franchise registration requirements. Failure to follow these registration procedures can result in violations of franchise laws and subject you to tax penalties.