The Internicola Law Firm, P.C.

Penalties for Failing to Register Your Franchise in New York

If you plan to sell a franchise in New York, you must first register your franchise with the state administrator. If you fail to do so, you will be in violation of New York's franchise registration statutes, which means the state administrator may take legal action against you.

Legal action may include criminal penalties, such as a felony offense, as well as a $50,000 fine for the violation you have committed. Or you may face civil penalties, such as a private lawsuit.

In a private lawsuit, liability may extend to a franchise's: 

• controllers;
• partners;
• officers;
• directors; and
• employees who materially aided in the violation. 

When you register your franchise in New York, it must include certain state-certified disclosures that are provided in the New Franchise Seller Disclosure Form. A failure to properly provide these disclosures may violate franchise registration statutes.

To make sure that you register your franchise correctly and provide the necessary disclosures, get the help of an experienced New York franchise attorney. He or she can guide you through the entire franchise registration process to help prevent violations of franchise registration statutes. 

Contacting a New York Franchise Attorney 

If you are an entrepreneur who is interested in franchising your business, there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your FDD. For a limited time, get New York franchise attorney Charles N. Internicola, Esq's Franchise Law Report to determine whether or not your business is right for franchising. Contact us today at 800-976-4904 for more information about Mr. Internicola's franchise law services in New York, and how he assists entrepreneurs to franchise their business nationwide.