What You Need to Know About Franchising in New York
Thinking about offering franchises in New York? Or maybe buying an existing franchise? It’s a great place to do so. With an economic output the size of Canada, New York attracts those looking to achieve the American dream—business ownership—everywhere from the Big Apple to Buffalo…and every city and town in between.
It’s important to educate yourself before selling franchises or buying a new or existing franchise in New York, so that you know what’s expected of you and what legal requirements and protections exist for both parties.
New York is a Franchise Registration State
Be aware that New York is a franchise registration state, which means that as a franchisor, you must register your franchise disclosure document with the Investor Protection Bureau and renew this registration annually.
Franchisee Rights in New York
Here’s something else to be aware of: the New York Franchise Sales Act. It was put into play to ensure that franchisees are given adequate information before investing in a franchise and to prevent fraud in franchise sales.
Fun Facts About the New York Franchise Industry
In early 2020, there were 30,285 franchises in New York, which provided jobs for 334,674, according to the Franchise Business Economic Outlook Report.
The most popular franchise sector in New York is donuts (there are more Dunkin’ Donuts than Starbucks in New York City!). The 2,078 donut franchises in the state make up 10.4% of total franchised units.
(or potential franchisors)
Franchisees & Franchisors
(or potential franchisees)
Working With a Franchise Attorney in New York
The franchise registration process can be intimidating if you’re new to it. The Franchise Disclosure Document itself is complex, and if you aren’t familiar with the process of registering a franchise in New York, it can take months, instead of days or weeks, to gain approval. Spadea Lignana has streamlined the registration process to ensure you remain compliant with your franchise in New York.
Our corporate office is located in Philadelphia, and we have a satellite office in Melville, NY, making it easy for both New York-based franchisees and franchisors to meet with us.
Flat Fee CORE Program for Franchisors
Spadea Lignana’s CORE program for franchisors is a cost-effective and practical solution for the ongoing legal needs of franchisors, including but not limited to, FDD updates, state registrations and franchise agreement executions. Through a proprietary cloud-based system we can effectively and efficiently manage FDD Disclosures and Franchise Agreement executions for fair flat fees billed monthly. We believe that hourly billing, although necessary in certain circumstances like complex M&A deals and litigation, can weigh on the relationship between client and attorney. By coming up with a fair flat monthly fee, the uncomfortable negotiating of whether a six-minute reply to an email should impact your monthly bill is removed from the equation.