I am Licensing My Business. How Do I Avoid U.S. Franchise Laws?

If you want to enter into a business relationship with a distributor or licensee, and meanwhile avoid the obligations required by New York franchise laws, then there are several pitfalls that you must stay away from. To prevent entering into a New York franchise relationship, you must not: 

• Assert any significant degree of control over the business relationship
• Provide and significant degree of assistance in the business relationship
• Require the distributor or licensee to make regular payments to your company
• Insist that the distributor or licensee use your trademark or business name, and maintain control over the use of that property 

By avoiding these arrangements, you should be exempt from New York franchise laws. However, different states have different laws, and if there is a disagreement, it may be left up to a court to determine the status of your business relationship.

Any joint ventures or strategic business alliances may be considered a franchise relationship, especially if that relationship involves the use of a unified name or trademark. To know whether your business relationship constitutes a New York franchise, you can get the professional advice of a New York franchise attorney. An attorney may be able to help you avoid New York franchise laws.

If you are involved in a business relationship in New York, or if you are interested in establishing a franchise relationship, you can learn more about the laws concerning franchise licensing by visiting our article library. 

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including how to structure your business as a franchise and obtain the proper licensing. For a limited time, get Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.