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New York is a franchise registration state. Before you offer or sell a franchise in New York you must first file and register your FDD with the Investor Protection Bureau of the New York Attorney General. The initial New York FDD filing fee is $750 and the annual renewal fee is $150.
Franchisors are generally required to provide prospective franchisees with a franchise disclosure document (FDD) before a franchise agreement is signed or any consideration is paid for the franchise. The FDD includes information about the franchisor, the franchise system, and the franchisee's initial investment.
Ing to the FTC, franchisors have an obligation to provide the franchisee with the FDD at least 14 days before it needs to be signed or before any initial money is exchanged. The franchisee has a right to a copy of the FDD after the franchisor has received the application and agreed to consider it.
To create a FDD, you need to collect and organize a lot of data about your franchise system, your financial statements, your operations manual, your marketing materials, and your legal documents. You may need to conduct market research, consult with experts, and update your records to ensure accuracy and completeness.
Renewal Registration for New York Franchisors To renew a franchise registration, the franchisor will pay a fee of $150. If this renewal process is not completed ing to the state's guidelines and within 120 days after the end of the fiscal year and initial registration, there may be penalties.
Georgia is not a franchise registration state nor a franchise filing state. However, Georgia does have business opportunity laws that sellers of business opportunities must adhere to.
FDD Legal Fee Development - Estimated Cost $15,000 to $45,000. Your FDD is a legal document that will serve as the entire legal underpinnings for your new franchise system and includes all of the legal agreements and documents, including your franchise agreement, between you and your franchisees.
The purpose of the Franchise Disclosure Document (FDD) is to provide prospective franchisees with information about the franchisor, the franchise system and the agreements they will need to sign so that they can make an informed decision.