The International Franchise Association is urging New York state to delay enforcing a new law that requires franchisors such as Subway, McDonald’s and hundreds of others to disclose sales made by their franchisees.
The Washington, D.C.-based trade association said the law “poses several challenges for franchise systems as well as privacy and legal concerns.â€
“Since this requirement is the first of its kind in the nation, there is significant uncertainty among franchisors about how to comply with this new obligation,†said Matthew Shay, president and CEO of the trade group.
Under the law, franchisors must tell the state the value of goods and services sold by their franchisees. The first submission deadline, Sept. 20, covers the sales period from March 1 to Aug. 31.
The IFA is asking the state Department of Taxation and Finance to push that submission deadline back to Dec. 31. More.
