New York is a franchise registration state which means that before you offer or sell a franchise "from" or "within" New York your FDD must first be registered with the New York Attorney General. When dealing with New York you need to be careful and you need to understand some of the follow senarios that may subject you to New York's franchise registration requirements:
new York regulation is extensive and no matter how good your intentions are‚ chances are that if you violate New Yorks regulation requirements you will be subjecting your company to fines and penalties.
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 franchisor's:
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 learn more about New York regulation and registering your FDD contact us at (800) 976-4904.
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