Franchising Under New York Law: 2016 Update

Franchising is a formula that allows an entrepreneur to expand his or her business and others to benefit from the entrepreneur’s know-how and already established brand vision. With franchising, companies grow and expand by selling franchises to outside investors who will acquire the right to operate a business under the franchisor’s brand and operating system, while, hopefully, profiting from the franchisor’s expertise. In return for the use of the brand and the support provided to the franchisee, the franchisor receives a franchise fee and royalties. Franchise law, in general, is complex and varies from state to state. New York State law has one of the most complex set of rules for franchisors.

In this course, Michael Einbinder of Einbinder Dunn & Goniea LLP, provides an in-depth look at New York’s regulatory framework and reviews New York franchise law compliance for franchising in the state. He also discusses the importance of due diligence when acquiring a franchise. In addition, this program addresses stages in the franchisor-franchisee relationship. This course will simplify and give a deeper understanding of the complexities of franchising and investing in a franchise in New York State. 

Learning Objectives:

I.     Recognize what constitutes a franchise under New York law

II.    Review the New York State Franchise Sales Act disclosure and registration requirements

III.   Discuss compliance with Federal Trade Commission Regulations

IV.   Enumerate and address specifically required disclosure items

V.    Address the use of Financial Performance Representation

VI.   Understand methods to gather information from franchisors in the development stages for the purpose of compliance with state law and federal regulations

VII.  Identify what you need to tell franchisors regarding what they can and cannot say in the franchise sales process

VIII. Advise on due diligence in franchise acquisitions

IX.   Explore the types of disputes that typically arise in the franchise relationship:

• Trademark claims
• Non-competition claims
• Royalty claims 
• Liquidated damages
• Breach of contract 
• FSA claims