All franchisors that have at least one franchisee operating in New York State should be aware that they must file an annual information return next month under a state tax law. This annual report is due on or before March 20th of each year.
Category: Regulatory Compliance
FTC Issues Guidance to Franchisors Regarding Disclosure of Franchise Territories
The Federal Trade Commission recently issued new guidance that will affect how franchisors disclose whether they grant exclusive territories to franchisees.
FTC Announces Revised Monetary Exemptions Under The Franchise Rule
The Federal Trade Commission (the “Commission”) recently announced an amendment to its “Disclosure Requirements and Prohibitions Concerning Franchising” (16 C.F.R. Part 436) (the “Franchise Rule”) revising the monetary limits for three of the listed exemptions.
Should You Use State-Specific Franchise Disclosure Documents?
Some franchisors continue to use a different Franchise Disclosure Document for each state that has a franchise or registration law. This approach increases the administrative burden on franchisors, as well as the risk of unintentional violation of a state’s franchise law where more than one state law applies to a transaction.
Iowa Supreme Court Orders Out-Of-State Franchisor To Pay Tax On Royalty Income
Last week, the Iowa Supreme Court issued a ruling that will require out-of-state franchisors to pay tax on income earned through royalties earned from Iowa-based franchisees. The decision has implications for any business that derives income from intangible assets (through licensing or otherwise) located in another state.
Negotiated Franchise Sales in California: Making Sense of the Rules and Regulations
Differences between California’s statute and regulation on negotiated franchise sales can be confusing even to experienced practitioners. This article explains the reasons for the differences and offers suggestions for resolving the conflict between the two provisions.
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