The New York Attorney General Office’s Department of Law (the “Department”) is the latest of the franchise registration states to announce an extension to franchise registration renewal deadlines in response to the public health emergency created by the coronavirus.
The California Commissioner of Business Oversight (the “Commissioner”) has issued guidance to franchise companies regarding the Department of Business Oversight’s (“DBO”) handling of annual franchise renewal filings.
This morning, Maryland’s franchise chief, Dale Cantone, warned franchise companies about failure to follow ASC 606 when filing for registration.
Under ASC 606, franchisors will have to begin deferring recognition of some or all of the up-front franchise fee revenues they receive over the life of a franchise agreement.
Unlike most states, California’s registration and disclosure law does not stop applying when the franchise agreement is signed. An agreement between the parties to materially change (or amend) an existing franchise agreement is an event triggering special requirements in California.
California Assembly Bills 1782 and 2637, which would have improved the regulatory climate for franchises in the state, have been vetoed by Governor Jerry Brown after being passed by an overwhelming majority of the legislature.
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