If you plan to exhibit at the International Franchise Expo in New York City, you need to know how U.S. franchise laws restrict what you can say and do at the IFE. To exhibit at the IFE you will need to either be registered to sell franchises in New York, or you will need to be exempt from the New York franchise law. A foreign franchisor can obtain a New York exemption for $450, but it will not allow a franchisor to sign a franchise agreement or to accept a payment.
Under the FTC Franchise Rule, franchisors may not accept payments or sign agreements with prospects until they have had a Franchise Disclosure Document (FDD) for 14 days. Moreover, even statements about historical sales and earnings of franchised outlets are prohibited, unless they are included in a franchisor’s FDD.
We can help you prepare to make the most of your investment in the IFE without violating the law. Join us for a free webinar by clicking RSVP below. If you would like more information, please contact Carl Zwisler at firstname.lastname@example.org.
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Gray Plant Mooty is recognized as one of the leading corporate law firms in Minnesota and one of the top franchise firms in the world. Our roots go back to 1866. Today, we are a full-service firm with nearly 180 attorneys and offices in Minneapolis and St. Cloud, Minnesota; Washington, D.C.; and Fargo, North Dakota.