What is the procedure for granting a franchise?
In New York, the procedure for granting a franchise can be quite complicated. First of all, the potential franchisee must submit an application, along with a fee, to the Department of State. This application includes a description of the business, the names and addresses of its officers, and the proposed franchise location. Once the application is received, the Department of State will review the proposal and determine if the proposed franchise meets the legal requirements of the Franchise Law. If the application is approved, the Department of State will issue a Certificate of Authorization, which will grant the franchise permission to operate. However, the franchisee must also get approval from the local zoning board prior to beginning operations. This is because the zoning board must determine if the proposed business meets local zoning laws. Once the Certificate of Authorization and zoning approval have been granted, the franchisee must then register the business with the Department of State and obtain all necessary licenses. These licenses may include a sales tax registration and a food service permit, if the business sells food. Once all of these steps have been completed, the franchisee is free to operate the business. However, the franchisee must still abide by the rules and regulations outlined in the Franchise Law. This includes paying all applicable taxes, maintaining proper business records, and providing quality customer service.
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