Franchise registration guide

Document format and submission

As of July 1, 2008, franchisors must use the format for franchise disclosure documents as specified in the amended FTC Franchise Rule (16 CFR 436, as amended; 72 FR 15444 (March 30, 2007)). Under the amended FTC Franchise Rule, states may require more extensive disclosures or requirements than what is described in the Rule. 16 CFR 436.10(b).  

Franchisors must submit franchise filings and pay associated fees through the NASAA Franchise Electronic Filing Depository (FRED) system.

If offering both unit franchises and area representative franchises, the franchisor must submit separate franchise disclosure documents for each. For more information, see the 2014 NASAA multi-unit commentary on NASAA’s website.

Find more resources on our franchise laws and regulations page.

Initial franchise registration

Required items for submission 

Most forms are available on our franchise registration forms page.

• Filing fees (must be paid through NASAA’s FRED system)
• Uniform franchise registration application form (includes certification form)
• Franchisor’s costs and source of funds form
• Uniform franchise consent to service of process form
• Franchise seller disclosure form
• Franchise disclosure document
• Consent of Accountant
• Guarantee of performance form: Complete this form only when the franchisor includes financial statements of its affiliated company, and that affiliated company absolutely and unconditionally guarantees to assume the duties and obligations of the franchisor under the franchise agreement.

Registration renewals and amendments

Submission deadline

Renewals: Franchise registration renewals must be submitted annually within 120 days of the close of the franchisor’s fiscal year end (N.Y. Comp. Codes R. & Regs. title 13 section 200.8 (1980)). If the Department of Law does not receive a renewal during the 120-day period, the franchise registration will expire. If the registration expires, no franchise offers or sales may be made within or from the state of New York until a franchise renewal application has been submitted to the Department of Law and accepted for filing. If a renewal is filed within the 120-day period, the franchisor may continue to offer or sell interests in franchises or advertise while the Department of Law is processing its application, unless otherwise advised by the Department of Law (N.Y. Comp. Codes R. & Regs. title 13 section 200.3 (i) (2) (1980)).

Amendments: An amendment reflecting a “material change” (N.Y. Comp. Codes R. & Regs. title 13 section 200.5(b) (1980)) to the franchise-offering circular must be submitted promptly. N.Y. Gen. Bus. Law section 683.9.

Items to include with submission

• Filing fees (must be paid through NASAA’s FRED system)
• Uniform franchise registration application (with certification form)
• One clean and complete copy of the proposed franchise disclosure document.
• One copy of the redlined pages comparing the latest franchise disclosure document to the one most recently registered in New York
• Consent of Accountant
• Guarantee of performance form: Complete this form only when the franchisor includes financial statements of its affiliated company, and that affiliated company absolutely and unconditionally guarantees to assume the duties and obligations of the franchisor under the franchise agreement.
• For annual renewals only (not amendment filings): Submit the following information required under 13 NYCRR 200.8:  
  • Name and address of each franchise sold; the date of the sale; and the name, address, and telephone number of the person purchasing the franchise
  • Price paid and credit terms for the sale of each franchise listed in the previous item
  • Copy of the annual audited financial statements of the franchisor as prepared by an independent public accountant

Advertisements

Franchisors must submit two copies of any advertising to be used in the offer or sale of franchises (13 NYCRR 200.9). At least seven days before its intended use, any advertisement must be submitted to the Department of Law via NASAA’s FRED system.

Franchise broker registration

Franchise brokers must submit a completed franchise broker registration form to the following address:

New York State Department of Law
Investor Protection Bureau, Franchise Section
28 Liberty Street, 21st Floor
New York NY 10005