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The Structure of a Franchisee Association

There are several ways to structure a franchisee association. This includes defining the members, establishing voting rights, and mandating the payment of dues. However, when structuring a franchisee association, it is important that the group does not violate U.S. antitrust laws. Therefore, such a group should always get the help of a New York franchise lawyer.

Ways a group may choose to structure a franchisee association include: 

• Voting ­- This can be structured on a per-unit basis, a one member/one vote basis, or some other basis system.
• Defining members - In some franchisee associations, every franchisee will be a member, while benefits may be extended to those who pay their dues. An association may also choose officers, directors, and designated representatives based on ownership interests.
• Dues - In a franchisee association, dues may be levied on a per-member basis, on a per-unit basis, as a percentage of gross revenues, or on some other basis. Caps on dues may be established to encourage participation by larger franchisees. Similarly, hardship rules may be established to encourage participation by new, small, or financially troubled franchisees.  

If you have purchased a franchise in New York, you may be considering the advantages and disadvantages of participating in a franchisee association. Likewise, if you are a franchisor and your franchisees have formed a franchisee association, you may have concerns about what this means for your own business interests. Learn more about franchisee associations by visiting our article library. 

Contacting a New York Franchise Lawyer

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 Franchise Disclosure Document. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether 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.