New York Allows International Franchise Expo Exhibiters to Apply for Registration Exemption

This posting was written by Pete Reap, Editor of CCH Business Franchise Guide.

The New York Attorney General’s Office has created an unusual franchise registration exemption that can be utilized by franchisors at the upcoming 2012 International Franchise Expo which will take place June 15-17 in New York City.

The exemption does not grant franchisors that are unregistered in the State of New York the ability to sell franchises at the trade show or even to provide copies of its Franchise Disclosure Document (FDD) to prospective franchisees. However, the exemption would permit an unregistered franchisor to promote its franchise opportunities to attendees at the show.

Signage required to be displayed by an exempted franchisor at the show explains that if the franchisor determined to proceed with a franchise program in New York, it would apply to register its FDD with the state as required by law. Only then, could the FDD be provided to prospective franchisees.

The exemption requires a fee of $150 for each day that a franchisor intends to exhibit at the show. The exemption application requires extensive disclosure of a franchisor’s litigation and bankruptcy histories, national and international franchise sales activities, and promotional materials that will be distributed at the show.

In addition, the application includes a prescribed booth sign and a handout insert that must be included in all promotional materials.

The three-day International Franchise Expo, which moves to New York City in 2012 after being held in the nation’s capital for more than 20 years, showcases hundreds of franchisors and attracts thousands of interested attendees.

New York’s Exemption Request Form for unregistered franchisors attending the show will appear in the CCH Business Franchise Guide.