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445 Hamilton Avenue
Suite 1102
White Plains, NY 10601
Tel: 914-681-0100
Email: info@pitlaw.com

Franchising
Franchise Law
Go to State Laws Map
Franchise Offering CircularFranchise sales laws in New York and several other states require franchise registration. Both federal and state franchise sales laws require franchisors to deliver a franchise disclosure document to each prospective franchisee. Some states without franchise sales laws have business opportunity laws that may nevertheless require a presale filing similar to a franchise filing. Franchise “relationship” laws in a number of states limit the franchisor's freedom to terminate a franchise or to refuse to renew or to permit the transfer of a franchise without good cause. [For more information on franchise relationship laws, link to the article entitled “Franchise Relationship Laws”.]

Navigating these laws is our job at Pitegoff Law Office PLLC.

As one of the leading franchise law firms in the country, we can help you make the right decisions and take the right steps to properly position your company for growth, whether as a franchisor, a franchisee or an area developer, or if you're not sure whether your system falls within the scope of the franchise laws.

Even bordering states differ on their franchise regulations. For example:
  • New York has a franchise sales law but no franchise relationship law and no business opportunity law.
  • Connecticut has a franchise relationship law and a business opportunity law but no franchise sales law.
  • New Jersey has a franchise relationship law but no franchise sales law and no business opportunity law .
For a number of years, the document that franchisors used to make the required disclosures to prospective franchisees was called the Uniform Franchise Offering Circular or UFOC. The first UFOC guidelines were adopted in 1975 by the Midwest Securities Commissioners Association, the predecessor to the North American Securities Administrators Association (“NASAA”). Under a Federal Trade Commission rule approved in 2007 (which replaced the FTC’s 1979 trade regulation rule on franchising), all franchisors in the U.S. are now required to make disclosures to prospective franchisees using the FTC’s Franchise Disclosure Document (FDD) format.


Contents of a Franchise Disclosure Document
  1. The Franchisor and any Parents, Predecessors and Affiliates
  2. Business Experience
  3. Litigation
  4. Bankruptcy
  5. Initial Fees
  6. Other Fees
  7. Estimated Initial Investment
  8. Restrictions on Sources of Products and Services
  9. Franchisee's Obligations
  10. Financing
  11. Franchisor's Assistance, Advertising, Computer Systems and Training.
  12. Territory
  13. Trademarks
  14. Patents, Copyrights and Proprietary Information
  15. Obligation to Participate in the Actual Operations of the Franchise Business
  16. Restrictions on What the Franchisee May Sell
  17. Renewal, Termination, Transfer and Dispute Resolution
  18. Public Figures
  19. Financial Performance Representations
  20. Outlets and Franchisee Information
  21. Financial Statements
  22. Contracts
  23. Receipts
Exhibits

State Administrators and Agents for Service of Process
Table of Contents of Operations Manual
Lists of Franchisees and Former Franchisees
Financial Statements
Franchisee Organizations
Franchise Agreement and other agreements
State Specific Addenda
Receipt
Franchising is highly regulated at both the federal and state levels. We help clients understand the rules and make the best franchising decisions for them and their businesses.
Useful Links
 American Bar Association (ABA) Forum on Franchising
 International Franchise Association (IFA)
 Federal Trade Commission (FTC)
 North American Securities Administrators Association (NASAA)
 New York State Attorney General's Office
 California Department of Corporations
 
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