Tag Archives: international franchising

Why Subfranchising is Rare in the U.S.

Subfranchising is one of three multi-unit franchise structures that the North American Securities Administrators Association, Inc. (NASAA) addressed in their Multi-Unit Commentary, which was the subject of an earlier post.  The other two types of multi-unit franchise offerings discussed in that post are area development and area representative. Of the three multi-unit approaches, the subfranchise is by far the least commonly used in the U.S.  And with good reason. In subfranchising, the franchisor appoints a master franchisee who has the right and obligation to sell subfranchises within a defined territory.  The agreement between the franchisor and the master franchisee is called …

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Franchise Law Change in New York

My optimistic world view got the best of me at the start of the 2014 legislative season in New York State.  I thought that 2014 might be the year when New York State changes its franchise law.  The changes that the New York State Bar Association (NYSBA) first recommended in January 2010 did become an Assembly bill at the end of the 2014 legislative session.  But no Senator wrote a companion bill in the 2014 legislative session.  And no bill came to a vote either in the Assembly or the Senate. The New York Franchise Act (NYFA) was already out of step with …

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