Legal Enforcement of Franchise Registration Statutes (Part A)

When you register to sell a franchise in New York, you are required to abide by certain franchise registration statues. These statutes are meant to protect franchisees against unethical business practices. If they are not followed according to the law, you may face legal action.

Specific legal action is meant to deal with franchise sales abuses. To uphold franchise regulation statutes, the state has placed significant investigatory and prosecuting powers in the hands of the state administrator, as well as the ability to provide for criminal enforcement and private rights of action.

If you have questions regarding the legal enforcement of franchise registration statutes and how they may affect your own business interests, you should seek advice from a New York franchise attorney.

Franchise Registration Statutes: An Overview of Violations and Legal Action

When selling a franchise in New York, there are several mistakes you can make that may result in a legal action, such as failing to register your franchise, or failing to make a necessary pre-sale disclosure.

Other violations that can lead to legal action include:

• making an untrue statement of a material fact, either intentionally or willfully in the registration application;
• omitting a material fact that renders other statements in the application as misleading;
• breaching an order or condition imposed on the registration, such as the breach of an impound condition; or
• failing to notify the administrator in a timely fashion of material changes in an application or report filed with the state.

If you plan to sell a franchise in New York, and want to prevent a violation of the franchise registration statutes, get the help of an experienced New York franchise attorney at the outset. He or she can help to make sure that you abide by the franchise registration statutes at every step of the process.

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