What Is New York's Net Worth Franchise Registration Exemption?
New York's net worth franchise registration exemption applies to franchisors who meet a minimum financial "net worth" criteria. The exemption only applies to FDD registration and does not exempt a franchisor from its FDD disclosure obligations.
The net worth exemption applies if:
- The franchisor has a net worth on a consolidated basis - according to its most recent financial statement - of not less than $15 million;
- The franchisor has a net worth - according to its most recent audited financial statement - of not less than $3 million and is at least 80% owned by a corporation which has a net worth on a consolidated basis of not less than $15 million.
Learn more about New York's franchise laws and registration requirements.
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