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Franchise brokers and franchise sales agents, more often than not, are necessary to an effective franchise sales program. When using franchise brokers and sales agents you must be aware of "extra" state specific disclosure requirements. In the State of New York prior to engaging and permitting a franchise broker or agent to engage in the franchise sales process you must file a "Sales Agent Disclosure" form with the New York State Attorney General. This is not a complex form to complete and it should be part of a systematic compliance program that you implement throughout the franchise sales process. Although this disclosure is relatively simple to prepare, in many instances (far too many times) it is overlooked and not filed. The end result is unnecessary "litigation risk".
The Sales Agent Disclosure Form (Form E) requires a franchisor to list the following information according to the State of New York:
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With services to make your growth strategy simple, cost effective, and with a team excited to help you, let’s talk about how we can help grow your business.
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