Franchise Laws (Part A)

Before buying a franchise in New York, you should become familiar with the laws involved with launching and operating a franchise business. These laws are meant to protect you as an investor in your new business venture.

Also known as franchise disclosure laws, these franchise laws give franchise purchasers certain legal rights, including the right to bring a lawsuit against an unlawful franchisor.

If you have questions about starting a franchise in New York, or if you need to file a lawsuit related to your business dealings, you can get the professional help of a Manhattan franchise lawyer.

Requirements of Franchise Laws

As a franchisee, the most important franchise law is that which requires pre-sale disclosures. These disclosures will be presented to you in a Franchise Disclosure Document (FDD), which will give you financial information about the company that you may invest in. When starting a franchise in New York, these disclosures will provide information such as the franchisor's:

  • Annual balance sheet for the 2 most recent fiscal years;
  • Statement of operations for the 3 most recent fiscal years;
  • Statement of stockholders' equity for the 3 most recent fiscal years;
  • Statement of cash flow for the 3 most recent fiscal years; and
  • History of bankruptcies and/or lawsuits if any have occurred.


In fact, New York prohibits the sale of franchises until an FDD has been filed on public record and registered by a designated state agency.

Receiving and Signing the FDD

Before receiving the FDD, you are permitted to have an initial meeting with a potential franchisor. However, if things progress, you must be provided with an FDD at least 14 calendar days before signing a contract. When you receive your FDD, you should have your Manhattan franchise lawyer look over the disclosures. A Manhattan franchise lawyer with a background in reviewing FDDs can help you avoid the missteps of starting a franchise in New York.

Continue to Next Page >>




Franchise Lawyer
Book about buying a franchise

IMPORTANT DISCLAIMER: The information contained on this website is provided for general educational purposes only, should not be relied on as legal advice and does not serve to create an attorney client relationship. In utilizing this website you acknowledge that there is no attorney client relationship between you and Charles N. Internicola, Esq. and that the information contained on this site does not and cannot serve as a replacement for the competent legal advice of a licensed attorney in your state. Further you acknowledge that any and all citations to cases and statutes must be independently verified by competent legal counsel to be current and to be accurate. The content of this website is subject to the Copyright of its author and owner, Charles N. Internicola, Esq.

Click here to view our privacy policy

Search

Books


An Entrepreneurs Guide To Purchasing a Business or Franchise
More Info

More Information

To obtain information about our business and franchise law services complete the form below:

Name *

Phone *

Email *

Tell us more *


Charles N. Internicola, Esq.
New York, New Jersey
and Nationwide Legal Representation

1610 Richmond Road
Staten Island, NY 10304
Phone: 718. 979. 8688
Toll Free: 800. 976. 4904
Get Directions

Note:
Your information is confidential and is not used or sold for marketing purposes. We accept no duty and no representation without a written contract setting forth terms of representation.

Video Library

Franchisee Services:

view all

FAQs

Franchisee Services

view all

©2012 Charles N. Internicola, Esq., All Rights Reserved, Reproduced with Permission Privacy Policy
Attorney web design by Foster Web Marketing, the best attorney website design solution on the Web offering search engine optimization for attorneys, lawyer website design, video for attorneys, and more.
Get SEO Tips from The Attorney Internet Marketing Blog