New York has long taken one of the most expansive approaches in the country to regulating franchise sales. Under current law, New York’s franchise registration requirements can apply even where the franchisee does not live in New York and the franchise will not be located there—so long as the franchisor is based in the state.
A newly introduced bill would change that.
Assembly Bill A10378, introduced in March 2026, would exempt certain out‑of‑state franchise sales from New York’s registration requirements. Specifically, the bill would apply where the franchisee is located outside New York and the franchise will not be operated in the state.
If enacted, this would be a meaningful narrowing of New York’s franchise law. For years, New York‑based franchisors have been required to register offerings for transactions with no in‑state franchisee and no New York operations, adding compliance costs and review delays to deals occurring entirely elsewhere.
The timing is notable. New York’s franchise registration unit has been understaffed for several years, and review cycles have often stretched for many months before substantive comments are issued. Limiting registration to transactions with a genuine New York nexus would reduce unnecessary filings and help focus regulatory review where the state’s interests are strongest.
The bill has been introduced and referred to committee, and there is no guarantee it will advance. But it is significant simply because it acknowledges how far New York franchise law currently reaches—and proposes to pull it back in a targeted, practical way.
For New York‑based franchisors selling franchises outside the state, this is a development worth watching.
Forward Franchising 