On October 20th, the New York State Bar Association’s Business Law Committee met to review and propose revisions to the New York Franchise Act (the “Act”). The committee focused on three potential revisions: First, an amendment to the statute’s definition of a franchise. Currently, to be considered a franchise, a franchisor must charge a fee and either the use of a trademark or a marketing system. The amended definition would require a showing of all three elements. Second, a revision to add language to Section 684 of the Act. Third, the committee discussed exempting New York franchisors who sell to franchisees that live and operate out of state from the requirements of the Act.

At the meeting, the committee voted to recommend the first revision, reject the second, and table the third for further discussion next month.

Information about the New York Franchise Sales Act is available at the New York Attorney General’s Web Site.

The text of the New York Franchise Sales Act is available here.

What Rights do Franchisees Have Under the NY Franchise Act, Einbinder & Dunn’s franchise law blog.