Franchisors & Franchisees

• Before You Buy a Franchise
• Franchise Registration Forms
• Franchise Exemption Requests
• Rescission Offer Samples
• Franchise Laws & Regulations
• Other New York State Laws
• Other Forms
• Franchisor-Franchisee Disputes
• IPB ePay
• IPB ePayment User Guide
• Useful Links

Before You Buy a Franchise

• What to Consider Before Buying a Franchise (PDF)
• Informed Investor Advisory on Franchising
• Lookup Franchise Registration Status
  

  To find out if a franchisor is registered to offer and sell franchises from or in New York, please check online at https://www.efdnasaa.org.

• Franchising Basics
  

  This is an online course for soon to be franchise owners, franchise company employees, franchisees and consultants. Sponsored by the International Franchise Association (IFA), it offers a comprehensive introduction into franchising for individuals considering purchasing a franchise. This course covers a wide variety of topics including franchising laws & regulations and the advantages and disadvantages of franchising.

  www.franchise.org/
  
  
• Franchise Sales Compliance
  

  Another online course offered by the International Franchise Association. It is primarily for individuals involved in the franchise sales and distribution process such as: franchise executives, managers, compliance officers, attorneys, paralegals, franchise brokers and consultants. Some of the topics covered are franchise disclosure laws, disclosure requirements, and franchise registration process.

  www.franchise.org
  
  
• Legal Representation
  

  The best advocate for you, in a franchise dispute, is a franchise attorney. As franchising is a highly specialized field, you should hire an attorney with experience representing franchisors or franchisees.

  Hiring an attorney should not be done without research. Visit www.findlegalhelp.org a site sponsored by the American Bar Association, to learn about referral services and issues you should raise when consulting with a lawyer. Do not feel restrained from hiring a lawyer whose offices are out-of-state, provided he or she is licensed to practice law in New York or will retain local counsel to litigate in New York. Another source for examining an attorney's credentials is www.lawyers.com. The franchise associations below may also provide referrals to experienced franchise attorneys.

Franchise Registration Forms

• Franchise Registration Information Sheet
  • 2017 NASAA Franchise Commentary Financial Performance Representations
  • 2014 NASAA Multi-Unit Commentary
  • 2008 NASAA Franchise Registration And Disclosure Guidelines Commentary
  • FTC Compliance Guides
  • Amended Franchise Rule FAQ's
  • 2008 NASAA Franchise Registration and Disclosure Guidelines
• State Cover Page
• Uniform Franchise Registration Application with Certification
• Franchisor's Costs and Source of Funds
• Uniform Consent to Service of Process
• Franchise Seller Disclosure Form
• Guarantee of Performance
• Franchise Broker Registration Form
• Sample New York State Addendum
• Sample Franchise Advertisement Verification

Franchise Exemption Requests

• New Franchise Expo Exemption Application Form For A U.S. Based Franchisor 
  
  

  E-file your application online using the NASAA Franchise Electronic Filing Depository (“FRED”) at https://www.efdnasaa.org. The deadline to file this application is May 19, 2023.

  (This is for an unregistered U.S. Based franchisor that wants to exhibit and offer for sale, but not to sell, at the International Franchise Expo in New York.)
• New Franchise Expo Exemption Application Form For An International Franchisor 
  
  

  E-file your application online using the NASAA Franchise Electronic Filing Depository (“FRED”) at https://www.efdnasaa.org. The deadline to file this application is April 30, 2023.

  (This is for an unregistered International franchisor that wants to exhibit and offer for sale, but not to sell, at the International Franchise Expo in New York.)
• Net Worth Exemption Form Pursuant To GBL § 684(2)
• Exemption Form For Franchisor To An Existing Franchisee Pursuant TO GBL § 684(3)(D)
• Notice of Appearance
• Gen. Bus. Law § 684.3(c) Isolated Sale Exemption Cases
  • BMW Co. Inc. et al. v. Workbench Inc. et al.
  • Burgers Bar Five Towns, LLC v. Burger Holdings Corp.
    (An isolated sales transaction is "the sale of a single franchise accomplished pursuant to an offer directed by the franchisor to not more than two persons.")

Rescission Offer Samples

• Not Registered
• No Initial Registration
• Did Not Amend Registration

Franchise Laws & Regulations

• New York State Franchises for the Sale of Motor Fuels
• New York State Franchise Act
• New York Franchise Regulations
• Formal Opinion No. 93-F4, Franchises relating to both the retail sale of motor fuel and the operation of a convenience store
• Federal Trade Commission Franchise Rule (16 CFR Parts 436 and 437)
• Federal Trade Commission Act (15 U.S.C. §§ 41-58, as amended)
• FTC INFORMAL STAFF ADVISORY OPINION 97-2 regarding delivery of a disclosure document via computer diskette
• 2003 NASAA Statement of Policy Regarding Electronic Delivery of Franchise Disclosure Documents

Other New York State Laws

• Accountancy Regulations
• Business Corporation Laws (press Laws of New York, then at index press BSC hyperlink)
• Executive Law (press Laws of New York, then at index press EXC hyperlink)
• Health Club Services Act (press Laws of New York, then at index press GBS hyperlink, and then press Article 30)
• Limited Liability Company Law (press Laws of New York, then at index press LLC hyperlink)
• Perjury and Related Offenses
• Tax Laws

Other Forms

• NYS Department of State, Division of Corporations, State Records and Forms
• Trademark and Patent Information
  • Register and search for trademarks and patents registered with the United States Patent and Trademark Office. 
  • State trademark agencies can be found at  State Trademark Information

Franchisor-Franchisee Disputes

• Franchise-Related Complaints On File

  To find out if a complaint has been filed in connection with a franchise, please call (212) 416-8224.



• Franchise-Related Complaint Form


• Alternative Dispute Resolution

  Litigation usually signals the end of a business relationship, but the franchise community has increasingly sought the use of mediation to solve franchise disputes. Franchisees who do not want to resort to litigation and believe they can still work with their franchisors should consider Alternative Dispute Resolution (ADR). While ADR is less expensive than litigation, franchisees should understand that the result of ADR is a mutually agreed upon resolution, not a finding of fact by a judge, and therefore is not legally binding on either party. One organization that provides franchise mediation program services is the International Institute for Conflict Prevention & Resolution. Information for that program https://www.cpradr.org/

• International Franchise Association's (IFA) Ombudsman Program

  This organization has an ombudsman who provides confidential listing, consulting and facilitating services to assist in resolving disputes. The initial call is free to all IFA members and their franchisees. 

Useful Links

American Association of Franchisees & Dealers (AAF&D)
A national non-profit trade association representing the rights of franchisees throughout the U.S. whose mission is to bring fairness to franchising. www.aafd.org

American Franchise Association (AFA)
A representative organization for franchisees which advocates changing the rules and laws governing franchising on both the state and national levels. www.franchise.org

Asian American Hotel Owners Association (AAHOA)
Provides ongoing professional education, about the hospitality industry, to its members so that they may become better managers and more successful business people. www.aahoa.com

Business.gov
Site is designed to help small businesses navigate and understand applicable federal and state rules and regulations. https://www.usa.gov/business

Federal Trade Commission (FTC)
Complaint hotline telephone number (877) 382-4357.
This organization regulates franchises on a federal level.
https://www.ftccomplaintassistant.gov/Information#&panel1-7

International Franchise Association (IFA)
This organization seeks to put franchisors, franchisees, and suppliers under one umbrella to facilitate effective business transactions among those member groups. www.franchise.org

New York State Bar Association (NYSBA) Franchise Law Committee
This committee was formed to provide a forum for those attorneys who actively practiced franchise laws and those who are interested in such laws. It seek to inform the general public to the fact that there is a large number of knowledgeable attorneys within the State who practice in this field. This site contains many interesting articles on franchising written by committee members. www.nysba.org

North American Securities Administrators Association, Inc. (NASAA)
This site contains a directory of how to contact your State's franchise regulators. www.nasaa.org
NASAA Franchise Resources

Service Corps of Retired Executives (SCORE)
The SCORE Association (Service Corps of Retired Executives) is a nonprofit organization dedicated to entrepreneur education and the formation, growth and success of small business nationwide. Working and retired executives and business owners donate their time and expertise as volunteer business counselors and provide confidential counseling and mentoring free of charge. www.score.org

State of California
California Franchise Web page
Electronic Access To Franchise Filings

State of Illinois
Illinois Franchise Web page

State of Maryland
Franchise Registration
Franchise Publications
Franchise Forms

State of Minnesota 
Minnesota Department of Commerce's Franchise Webpage
eFiling
Franchise Registration and Enforcement Look-up Tool 

State of Rhode Island
Rhode Island Franchise Web page 

State of Virginia
Virginia Franchise Web page

State of Washington
Washington Franchise Web page

State of Wisconsin
Wisconsin Franchise web page
E-filing web page

U.S. Business Advisor
This site provides a variety of information, including:

• Starting, managing and marketing your business. Includes links to American Express Small Business Network, Forbes Small Business Center and Fortune Small Business magazine.
• Business tax concerns. Includes information on self-employment concerns, direct access to tax law and American Bar Association Tax Section publications.
• Financing your business. Includes information on Small Business Administration loan programs, Department of Agriculture loan programs and Kiplinger small business finance.
• Workplace regulations. Includes information on Equal Employment, Americans with Disabilities Act, employee benefits and pensions.

www.business.gov

U.S. Small Business Administration (SBA)

NYS Small Business Development Center

This official site site of the SBA is a trove of information how to start, mange, finance and sell a business. They also can be reached at the Small Business Answer Desk at 800-U ASK SBA. Use this site to find out how to:

• Write a business plan.
• Obtain needed licenses.
• Obtain SBA loans,from $2,000 to $2 million and beyond.
• Receive disaster relief.
• Link to hundreds of on-line resources.

www.sba.gov

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