Updated Proposal Incorporates Public Feedback and Strengthens Standards for Franchise Brokers.
WASHINGTON, D.C. – (July 28, 2025) – The North American Securities Administrators Association (NASAA) is requesting public comment on a proposed NASAA Model Franchise Broker Registration Act, more commonly known as the Franchise Broker Act. Comments are due on or before August 27, 2025. This proposal is a revised release of the Franchise Broker Act, originally issued for public comment on May 13, 2024, and incorporates feedback received during the initial comment period.
Franchise brokers have been a source of numerous complaints to NASAA members, including allegations of misrepresentations, hard sales tactics, and confusion about their roles and obligations. Although franchisors are required to register with state franchise administrators in 15 states, currently only two states, New York and Washington, require franchise brokers to register with the state. There is no federal regulation of franchise brokers.
The Franchise Broker Act aims to establish franchise broker registration and conduct standards, define prohibited practices, and set disclosure obligations and recordkeeping obligations for franchise brokers. The Franchise Broker Act is designed to be enacted by any state, not just those states that regulate franchise offerings.
“This proposed model act underscores NASAA’s unwavering commitment to investor protection and market transparency. By establishing clear standards for franchise brokers, we aim to close regulatory gaps and foster a more trustworthy franchise marketplace,” said NASAA President Leslie Van Buskirk. “I wish to thank the members of the Francise and Business Opportunities Project Group for their work in developing this proposed model act and we look forward to receiving comments on the proposal.”
This re-proposal of the Franchise Broker Act includes numerous revisions to the 2024 proposal, including changes to defined terms, registration and disclosure requirements, and conduct standards.
“We’ve worked hard to incorporate feedback from stakeholders and clarify the responsibilities of franchise brokers,” said Theresa Leets, Chair of the Franchise and Business Opportunities Project Group and Assistant Chief Counsel, Franchise Unit, Legal Division, California Department of Financial Protection and Innovation. “This updated proposal is a step forward in promoting fair practices.”
To review the proposed Franchise Broker Act, visit nasaa.org.
– NASAA–
About NASAA:
Organized in 1919, the North American Securities Administrators Association (NASAA) is the oldest international organization devoted to investor protection. NASAA is a voluntary association whose membership consists of the securities regulators in the 50 states, the District of Columbia, Puerto Rico, Guam, the U.S. Virgin Islands, the 13 provincial and territorial securities regulators in Canada, and the securities regulator in México. For more information, visit www.nasaa.org.
For More Information:
Fred Baldassaro, Director of Communications
fbaldassaro@nasaa.org | 202-737-0900
Karen Grajales, Manager, Communications and Investor Outreach
kgrajales@nasaa.org | 202-737-0900
