What documentation is required when establishing a franchise?

When establishing a franchise in New York, there are several documents that need to be completed and submitted in order to legally create a franchise. These documents may include a Franchise Disclosure Document (FDD), Franchise Agreement, Financial Statements, and other applicable forms. The FDD is considered the cornerstone of the franchise disclosure system. It must be provided to a potential franchisee at least 14 business days before any agreement is finalized. The FDD provides detailed information about the franchise and includes topics such as the franchisor’s history, fees, territory, and restrictions. The Franchise Agreement is a legal document signed by both the franchisor and franchisee that outlines the expectations and duties of both parties. Financial Statements provide detailed reports of the franchisor’s fiscal information. If the franchise is to have employees, it will need to register with the New York Department of Labor and submit all pertinent forms. Depending on the type of franchise, additional documents may be required such as zoning documents, business licenses, copies of insurance policies, and other paperwork. Establishing a franchise requires the potential franchisee to do their due diligence and take all appropriate steps to ensure they are in compliance with the law.

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What documentation is required when establishing a franchise?

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