Types of Franchises Available To Entrepreneurs in New York

If you are serious about investing in a franchised business it best to consider the three basic type of franchises, typical, in the New York market. The following are the major types of New York Franchises. Business Format Franchises: In business format franchises, a company expands by supplying independent business owners with an established business, including its name, products, rules and trademarks.  The franchisor, generally, assists the independent owners in launching and running their businesses.  In return, the business owners pay fees and royalties to the franchisor.  In most cases, the franchisee also buys its business supplies from the franchiser or from approved vendors.  Fast food restaurants are good examples of this type of franchise. Product Franchises: Also called a “trade name franchise.”  Product franchises involve the sale and/ or manufacture of products.  The business model covers the overall management of the sale of these products.  A franchisor supplies a product

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Draft A Clear Statement of Work in New York

When hiring a business or individual in connection with a project, it is important that all parties create and agree to a clear and precise Statement of Work. A Statement of Work (SOW) is a formal document entered into by parties involved in a project that specifies in clear understandable terms the work to be completed.  A SOW should captures and defines the specific work to be performed for a client, deliverables, and a timeline that a vendor or contractor must execute – at a bare minimum. A SOW needs to contain the material terms of what needs to be done in as definitive and precise of a manner as possible. Generally, these are the three major types of SOWs: Design Based SOW – This type of SOW tells the supplier how to do the work. The statement of work defines buyer requirements that control the processes of the supplier.

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Terminating A Franchise Agreement In New York: NY Franchise Law Basics

The termination or cancellation of a New York franchise relationship requires planning, a thorough understanding of your particular New York franchise agreement and procedural formalities.  Typically, it is advisable to consult with your franchise lawyer. New York Franchise Terminations (Franchisee Considerations) For example, preparation should begin before signing a franchise agreement by a New York franchisee.  Before signing, a would-be franchisee should consider the written terms outlining the right to terminate the franchise agreement.  Other clauses, of course, should be reviewed.  This post, only, addresses one issue of many that a franchisee should consider. Typically, a franchisor shall lay out several conditions it would consider to be breaches of the franchise agreement that trigger termination.  These conditions will not afford an opportunity for either party to cure or correct the specific condition.  These incurable breaches are, typically, material breaches of franchise agreement and, often, New York law.  In some cases, a

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Franchisors Filing of NYS Tax Documents

With the new year fast approaching, franchisors in New York should begin focusing on updating their franchise disclosure documents, renewing their franchise registrations and preparing their New York state tax filing documents. Tax Filing Obligations of Franchisors in New York New York reporting requirement applies where the franchisor-franchisee relationship falls within the broad franchise definition under the New York franchise statute. The statute was created so that New York tax authorities can verify state tax filings submitted by New York franchisees so that the franchisor’s filing matches what the franchisee disclosed. Franchisors in New York that have at least one franchisee doing business in New York are required to register as a sales tax vendor and must file information returns with the New York State Department of Taxation and Finance. The reporting period is from March 1 to February 28 of the subsequent year – in most cases. The returns

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New York Non-Compete & Confidentiality Agreements

Business in New York can be highly competitive, and relies, in part, upon a business’s ability to protect valuable information disclosed to current and past employees. Many NY companies feel that implementing non-compete agreements and other contractual obligations will encourage employee retention overall and protect information should an employee leave. It is important for New York businesses to understand, however, that there are restrictions to when and how non-compete agreements can be enforced. Traditionally, non-compete agreements in New York are used in companies and industries involving sensitive proprietary information and/or trade secrets. Non-compete agreements are commonly found across many industries regardless of size or products or services offered. They can take many forms depending on the information to be protected, including confidentiality agreements (prohibiting use or revealing information) and non-solicitation agreements (prohibiting approaching customers, poaching employees or contacting vendors). New York Courts consider the enforcement of a specific non-compete agreement

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Reasons for a New York Landlord to Hire an Real Estate Attorney

If you are a New York landlord that owns or manages one or a few rental properties, then you are unlikely to have a New York lawyer on retainer. To save costs and avoid frustration, landlords should recognize that when these five situations arise, it is time to hire a real estate attorney in New York.  We see too many issues and the issues, normally, fall into one of the following: Evicting a Tenant in NY In New York, an eviction lawsuit is a summary proceeding that takes much less time than other New York civil matters.  But, in exchange for the expedited treatment of cases, landlords must follow detailed court rules to the letter. These rules range from serving proper and timely notice on the tenant to filing the right papers in court with the appropriate legal arguments.  Additionally, landlords should know at the outset that New York Landlord-Tenant

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New York Partnership & Joint Venture Due Diligence Checklist

We, regretfully, see too many New York, New Jersey and Connecticut companies entering into business relationships with foreign nationals & corporations with little foresight.  Often cultural and divergent business ethics leads to immediate issues.  The following Merger & Acquisition Due Diligence Checklist is intended as a guide to vetting a prospective partner/joint venture for business in New York.  The list is not exhaustive and an experienced New York attorney is, normally, necessary to join your due diligence team.  This list is, also, useful for those doing being with New York companies and individuals, but was specifically tailored based on experience with Asian companies.  Please don’t chase an opportunity without considering the risks.  The cost is, likely, less than you think and risks are, likely, greater than you imagine. This New York-Focused Merger & Acquisition Due Diligence Checklist is not a substitute for retaining a New York attorney to assist with your New

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