New York State Franchise Registration Requirements
The State of New York is a franchise registration state that actively maintains and monitors franchise registrations and franchise sales in the state of New York. As a franchise registration state, prior to offering or selling a franchise in or from the State of New York, Franchisors need to ensure that their FDD is registered with New York Attorney General's Office and more specifically the Franchise and Securities Division for the New York State Law Department.
New York Registration is Mandatory if Your Franchise Company Is Located in New York
If you are franchisor that is located within the State of New York you must always ensure that your FDD is registered in New York, even if your franchise sales occur exclusively in other states. The reason for this is because the jurisdictional reach of the New York franchise laws and regulation is quite extensive and even applies to a New York based franchisor's sale of a franchise in another state, i.e., if your franchise company is located in New York and you sell a franchise in Texas to a Texas resident, you nevertheless need to be registered in New York.
The Registration Process
Franchisors must file their New York FDD registration applications through the New York State Department of Law located at 120 Broadway, 23rd Floor, New York, NY 1027. Along with the current and updated FDD the New York registration application must include:
- Uniform Franchise Registration Application (UFRA-A)
- Uniform Franchise Consent to Service of Process (UFRA-D)
- Certification of Application (UFRA-C)
- Supplemental Information (UFRA-B)
- Filing fee (currently) $750 payable to "The New York State Department of Law."
- Guarantee of Performance (UFRA-F)
- Sales agent disclosure notification.
The FDD, referred to in New York as an Offering Circulars must be submitted in print and digital format with one complete print hard copy of the proposed offering circular and one read-only CD containing another copy. Alternatively a franchisor may submit two print hard copies of the proposed offering circular.
Upon submission of a complete franchise registration application and FDD, franchisors and their franchise counsel will, typically, receive a response within thirty days of submission. The response will typically be in the form of a notice from the Law Department where you will be advised that (a) your FDD registration application has been accepted for filing or (b) your application was denied due to certain specified deficiencies. Acceptance of your application for filing does not mean that your FDD is registered but that it has been received and is under review. Following receipt of your application a New York examiner will follow up with notifications either confirming registration or issuance of a deficiency notice requesting additional information or modifications to the FDD. The most common modifications relate to disclaimers contained on the FDD state cover page and FDD amendments necessary to align the FDD with New York's franchise regulations.
Frequently Asked Questions
- What Do I Need To Do To Apply For A Fractional Franchise Exemption In New York?
- What Is A "Franchisee Fee" Under New York Law?
- What Is A "Marketing Plan" Under New York's Franchise Law?
- What is New York's "Existing Franchisee" Franchise Registration Exemption?
- What is New York's "Isolated Sale" Franchise Registration Exemption?
- What is New York's Net Worth Franchise Registration Exemption?
- What Remedies are Available upon Termination or Nonrenewal of a Franchise in New York?