The New York Franchise Act is perhaps the nation’s toughest franchise lawand one seminal reason why is that New York’s definition of the term "franchise" is the broadest in the nation, subsuming certain licensing, distribution and other arrangements that are not deemed to be "franchises" under any other federal or state franchise law, rule or regulation.
New York considers a "franchise" to exist in either of two circumstances: (i) where a franchisee, in return for a "franchise fee," is granted the right to sell goods or services under a marketing plan or system prescribed in substantial part by the franchisor, or (ii) where a franchisee, in return for a "franchise fee," is granted the right to sell or distribute goods or services substantially associated with the franchisor’s trademark, logo, advertising or other commercial symbol.1
