Jared Foley and Jesse Contreras address a major shift in New York franchise litigation in their new article for Bloomberg Law, “Trio of Rulings Shift New York’s Franchise Sales Act Litigation.” They explain how recent state and federal decisions are moving away from the long-standing Olivieri framework and embracing a more text-driven interpretation of the New York Franchise Sales Act—one that strengthens the Section 684 exemption for qualifying high-net-worth franchisors and may significantly narrow Section 683-based disclosure claims. The piece also highlights what this trend means in practice, including where risk still remains (fraud, misrepresentation, and the FTC Franchise Rule) and the smart compliance steps franchisors should take now.
