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New York State Franchise Registration: FDD Registration

New York Franchise Registration Status: Registration State
State Registration Fee: $750.00

New York is a franchise registration state. As a franchisor you must register your FDD with the Investor Protection Bureau of the New York Attorney General. The initial filing fee is $750 and the renewal fee is $150. Registration lasts for one year and requires annual renewal.

As a franchise registration state, before you offer or sell a franchise in New York your FDD must be registered with the New York Attorney General. Following initial registration in New York, you must ensure that your FDD remains current and your registration is renewed not less frequently than annually, within 120 days of the end of your fiscal year. Unlike other franchise registration states, New York applies an expansive application of its franchise registration laws and for those franchisors that are physically located within the State of New York, i.e., you maintain your corporate offices in New York, you operate company owned outlets in New York, or you are incorporated in New York, your FDD must be registered in the State of New York before you may even offer and sell franchises outside the state of New York.

To learn more about registering your FDD in New York and how our team can help you get registered, give us a call at (800) 976-4904 or contact us.

New York Franchise Registration FAQ’s

Who Regulates Franchises in New York?

The New York Attorney General regulates and oversees enforcement of the New York State Franchise Act and New York’s Franchise Regulations.

Where Are FDD Registration and Renewal Applications Filed?

Applications for initial FDD registration, annual renewals, and amendments are filed at:

New York State Department of Law
Investor Protection Bureau
28 Liberty Street, 21st Floor
New York, NY 10005
Their telephone number is (212) 416‐8236

What Should I Include with My Initial Franchise Registration Application?

The initial franchise registration application should include:

  • Initial registration fee of $750 payable to "The New York State Department of Law";
  • Uniform Franchise Registration Application with Certification Form;
  • Franchisor's Cost and Source of Funds Form;
  • Consent to Service of Process Form;
  • Sales Agent Disclosure Form;
  • Guarantee of Performance Form (required only if financial statements of an affiliated company are included in the FDD);
  • Franchise Disclosure Document (one hard copy and one read‐only CD containing a copy or two hard copies)

What Are the Fees for Franchise Registration Applications in New York?

The initial registration fee is $750. The FDD renewal and amendment fee is $150.

What Financial Statements Are Needed for Registration?

New York requires audited financial statements and does not permit the financial statement phase-in process permitted under the Federal Franchise Laws. For start-up franchisors new to franchising and within their first year of offering franchises, the initial FDD and registration application must include an audited balance sheet. Thereafter, annual renewal requires the inclusion of three years of audited financial statements comprised of "statement of operations (profit and loss statements)", "statement of stockholders equity", and "statement of cash flows".

If the year end audited financial statements were issued more than 90 days before your FDD registration / renewal application date, you will also be required to submit an unaudited balance sheet and statement of operations within 90 days of your application date.

How Long Will It Take for My Registration Application to Be Approved?

The length of time that it takes for your FDD registration application to be approved depends on the completeness of your registration application and FDD. Upon filing your application and FDD will be assigned to an examiner / principal accountant at the Franchise Section of the Investor Protection Bureau. The New York examiners are proficient, provide timely notification and are extremely responsive to inquiries. After the filing of your registration application, within one to two weeks you will receive a confirmation letter acknowledging that your registration application has been received, the examiner that your application has been assigned to and your file number. Within 30 days of your registration application you will receive a letter from the examiner advising of updates and/or changes required by the State of New York. Typical reasons for a delay in your registration will relate to incompleteness of your FDD and your failure to address items raised by the examiner. When registered you will receive a letter from the examiner advising of the registration of your FDD and the effective date of your registration.

When Must I Renew My New York FDD Registration?

No less frequently than annually and not later than within 120 days of the end of your fiscal year.

When Do I Have to Amend My New York FDD?

Under both the Federal and New York State Franchise Laws there are various triggers that will require you to amend your FDD and FDD registration prior to your annual renewal requirement. The most common reasons for an amendment relate to material changes in your FDD, your franchise offering or events that would render your existing FDD misleading.

Are There Exemptions to New York Registration?

Yes, in certain limited instances New York recognizes exemptions to the franchise registration process. These limited exemptions and registration exemptions and but do not negate your obligation to properly disclose an FDD to your prospective franchisee. Limited FDD registration exemptions include limited transactions that meet certain threshold requirements such as to the net worth of the franchisor and the limited one-time isolated franchisee sale exemption.

What Is the Definition of a Franchise Under New York Law?

Under New York law a franchise is defined as:

"Franchise" means a contract or agreement, either expressed or implied whether oral or written, between two or more persons by which:

(a) A franchisee is granted the right to engage in the business of offering, selling or distributing goods or services under a marketing plan or system prescribed in substantial part by a franchisor, and the franchisee is required to pay, directly or indirectly, a franchise fee, or
(b) A franchisee is granted the right to engage in the business of offering, selling, or distributing goods or services substantially associated with the franchisor’s trademark, service mark, trade name, logotype, advertising, or other commercial symbol designating the franchisor or its affiliate, and the franchisee is required to pay, directly or indirectly, a franchise fee.

Need assistance registering your FDD? Give us a call at (800) 976-4904 or contact us. We’ll help get you registered.

Useful Links Concerning New York Franchise Laws

New York Attorney General Franchisor and Franchisee Resource Page – This is the primary franchise resource page published by the Investor Protection Bureau of the New York Attorney General’s Office. This page includes important forms and links for franchisors, including, franchise registration and exemption forms.

New York State Franchise Act – Covers various topics including franchise disclosure requirements, franchise exemptions, violations and more.

New York Franchise Regulations – Contains information regarding the regulations surrounding New York franchise law including the franchise registration application, denial, suspension, annual report requirements, marketing regulations and more.

If you are considering franchising your business or expanding your franchise in any additional states we encourage you to visit our State Specific Franchise Law and registration requirements.

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Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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