Members of the New York business community enter into business relationships on a daily basis, often without thinking twice as to whether such arrangements are “franchises,” with significant legal repercussions. Indeed, most individuals presume that a “franchise” only exists where a self-proclaimed “franchisor” enters into a contract labeled a “franchise agreement,” with all parties fully intending to create a franchise relationship.

This is not the case, and such a misconception can become a costly mistake, particularly in New York, which has one of the broadest definitions of a “franchise” in the country.

The Federal Franchise Law and the Definition of a “Franchise”