{"id":50711,"date":"2025-11-13T10:09:12","date_gmt":"2025-11-13T15:09:12","guid":{"rendered":"https:\/\/www.thefranchiseking.com\/?p=50711"},"modified":"2026-01-14T09:42:57","modified_gmt":"2026-01-14T14:42:57","slug":"new-york-state-senate-bill-s7289","status":"publish","type":"post","link":"https:\/\/www.thefranchiseking.com\/new-york-state-senate-bill-s7289","title":{"rendered":"New York is Trying to Force Big Fast Food Franchises to Share the Risk"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"620\" height=\"620\" src=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/new-york-fast-food-chain-law-620x620.jpg\" alt=\"state of new york image for blog post about new york state fast food law\" class=\"wp-image-50713\" srcset=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/new-york-fast-food-chain-law-620x620.jpg 620w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/new-york-fast-food-chain-law-300x300.jpg 300w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/new-york-fast-food-chain-law-150x150.jpg 150w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/new-york-fast-food-chain-law-768x768.jpg 768w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/new-york-fast-food-chain-law-370x370.jpg 370w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/new-york-fast-food-chain-law-270x270.jpg 270w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/new-york-fast-food-chain-law-570x570.jpg 570w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/new-york-fast-food-chain-law-740x740.jpg 740w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/new-york-fast-food-chain-law.jpg 1000w\" sizes=\"auto, (max-width: 620px) 100vw, 620px\" \/><\/figure>\n\n\n\n<p>The state of New York has introduced major legislation affecting the quick-service industry. This proposal (<em>Senate Bill S7289<\/em>), creates the <strong>\u201cNew York State Fast Food Franchisor Accountability Act.\u201d<\/strong> It&#8217;s currently moving through the 2025-2026 Legislative Session. <\/p>\n\n\n\n<p>This is important news for the entire franchising sector. Read why. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>The law\u2019s goal is simple. It seeks to establish <strong>joint and several liability<\/strong> for large fast-food franchisors. <\/p>\n\n\n\n<p>This means that franchisors can be held legally and financially responsible. They&#8217;ll be liable for certain labor and safety violations committed by their <a href=\"https:\/\/www.thefranchiseking.com\/local-fast-food-franchises\">independent franchisees<\/a>.<\/p>\n\n\n\n<p><strong>Note<\/strong>: This represents a significant shift in legal risk. It forces large corporations to share accountability for workplace standards.<\/p>\n\n\n\n<p>With that in mind, here are the most critical facts you need to know about <a href=\"https:\/\/www.nysenate.gov\/legislation\/bills\/2025\/S7289\" target=\"_blank\" rel=\"noreferrer noopener\">New York Senate Bill S7289<\/a>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Joint Liability Established:<\/strong> The bill holds large fast-food franchisors <strong>jointly and severally liable<\/strong> for certain labor, safety, and human rights violations committed by their franchisees.<\/li>\n\n\n\n<li><strong>Targeted Chains Only:<\/strong> This legislation applies strictly to <strong>&#8220;fast food chains&#8221;<\/strong> that operate <strong>50 or more establishments nationally<\/strong>. Small or independent chains are not included.<\/li>\n\n\n\n<li><strong>Broad Coverage:<\/strong> The franchisor can be held liable for violations of the <strong>Labor Law<\/strong> (<em>wages, sick leave<\/em>), <strong>Workers&#8217; Compensation Law<\/strong>, <strong>Human Rights Law<\/strong> (discrimination), and various safety orders.<\/li>\n\n\n\n<li><strong>No Contractual Escape:<\/strong> Any clause in a franchise agreement that attempts to <strong>waive this liability<\/strong> or force the franchisee to <strong>indemnify<\/strong> the franchisor is <strong>void and unenforceable<\/strong>.<\/li>\n\n\n\n<li><strong>Franchisee Relief:<\/strong> Franchisees can legally challenge the franchisor if they can prove the franchise agreement&#8217;s terms create a <strong>substantial barrier<\/strong> to complying with the law.<\/li>\n\n\n\n<li><strong>Current Status:<\/strong> The bill is currently moving through the New York State Senate (<em>2025-2026 Session<\/em>). It is <strong>not yet law<\/strong> but is a major legislative priority.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-new-york-state-fast-food-franchisor-accountability-act-defining-who-is-affected\">New York State Fast Food Franchisor Accountability Act: <strong>Defining Who is Affected<\/strong><\/h2>\n\n\n\n<p>The bill is highly specific about which businesses it targets. It focuses on the largest entities in <a href=\"https:\/\/www.thefranchiseking.com\/food-services-industry\">the industry<\/a>.<\/p>\n\n\n\n<p>In this case, a <strong>\u201cfast food chain\u201d<\/strong> is precisely defined. It must be a set of restaurants. And a <strong>\u201cfast food restaurant\u201d<\/strong> is an establishment in New York State. It must be part of one of these chains. <\/p>\n\n\n\n<p>In addition, this set must consist of <strong>50 or more establishments nationally<\/strong>. These establishments must share common branding. They can also be characterized by standardized operations. This includes standardizing decor, marketing, and products.<\/p>\n\n\n\n<p>Furthermore, its regular business must involve primarily providing food or beverages. And the food must be for immediate consumption. This can be on-premises or off-premises. The customers typically order and pay before eating. And the items are often prepared in advance or heated quickly.<\/p>\n\n\n\n<p>Finally, this definition aims to capture the classic <a href=\"https:\/\/www.thefranchiseking.com\/qsrs-wage-increases\">quick-service business model<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-scope-of-joint-liability\"><strong>The Scope of Joint Liability<\/strong><\/h2>\n\n\n\n<p>Under this proposed act, <a href=\"https:\/\/www.thefranchiseking.com\/fast-food-franchise-capitals\">a fast-food franchisor<\/a> becomes responsible for ensuring compliance. They must ensure their franchisee complies with a list of applicable laws.<\/p>\n\n\n\n<p>For example, if a franchisee is liable for a violation, the franchisor becomes <strong>jointly and severally liable<\/strong> for fines or penalties.<\/p>\n\n\n\n<p>In this case, the covered laws and regulations are extensive. They include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>All applicable sections of the Labor Law.<\/strong> This covers many fundamental worker rights. This includes rules for minimum wage and overtime pay. It also covers the New York State Paid Sick Leave Law. Other covered laws include the New York Prenatal Leave Law and the Lactation Accommodation Law.<\/li>\n\n\n\n<li><strong>The Workers\u2019 Compensation Law.<\/strong> Franchisors must ensure their franchisees comply with these insurance and safety requirements.<\/li>\n\n\n\n<li><strong>Article 15 of the Executive Law (Human Rights Law).<\/strong> This relates to employment discrimination and other protections.<\/li>\n\n\n\n<li><strong>Orders issued by the Governor.<\/strong> This includes emergency and executive orders. These orders must concern employment standards or worker safety.<\/li>\n\n\n\n<li><strong>Orders issued by a county or municipality.<\/strong> These local orders also relate to employment standards or worker safety.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-background\" style=\"background-color:#e5e7e4\">The law can be enforced against the franchisor to the same extent it is enforced against the franchisee. This creates a direct legal path to hold the franchisor accountable.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-new-york-state-fast-food-franchisor-accountability-act-protection-for-the-franchisee\">New York State Fast Food Franchisor Accountability Act: <strong>Protection for the Franchisee<\/strong><\/h2>\n\n\n\n<p>The New York State Fast Food Franchisor Accountability Act includes provisions designed to protect the franchisee. It recognizes that the terms of a franchise agreement can <em>sometimes <\/em>impede compliance.<\/p>\n\n\n\n<p><strong>Note<\/strong>: One of the reasons I published this article, is to point out the importance of hiring and maintaining a business relationship with a <a href=\"https:\/\/www.thefranchiseking.com\/experienced-franchise-attorney\">competent franchise attorney<\/a>. Doing so will help you a lot. Let&#8217;s continue. <\/p>\n\n\n\n<p>A franchisor is generally prohibited from shifting liability. A waiver of this new law by the franchisee is <strong>contrary to public policy.<\/strong> <\/p>\n\n\n\n<p>This means that any agreement by a franchisee to <strong>indemnify<\/strong> the franchisor is <strong>void and unenforceable.<\/strong> This means franchisors cannot simply write a clause into the contract to escape the new liability. In a nutshell, the bill offers a specific remedy <a href=\"https:\/\/www.thefranchiseking.com\/big-beautiful-bill-franchisees\">for the franchisee<\/a>. This:<\/p>\n\n\n\n<p>If the terms of a franchise <strong>prevent or create a substantial barrier<\/strong> to a franchisee\u2019s compliance with the covered laws, the franchisee can take action. They may file for monetary or injunctive relief against the franchisor.<\/p>\n\n\n\n<p>There is also a key presumption established in the bill. <\/p>\n\n\n\n<p>Specifically, there is a <strong>rebuttable presumption<\/strong> that any changes to the franchise terms that <strong>increase the franchisee\u2019s costs<\/strong> create a substantial barrier to compliance. This shifts the burden of proof to <em>the franchisor<\/em>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-current-status-of-the-new-york-state-fast-food-franchisor-accountability-act\"><strong>The Current Status<\/strong> of the <strong>New York State Fast Food Franchisor Accountability Act<\/strong><\/h2>\n\n\n\n<p>Senate Bill S7289 was introduced on April 8, 2025. It&#8217;s been committed to the Committee on Labor. <em>But it is not yet law<\/em>. <\/p>\n\n\n\n<p>That said, it signals a strong legislative push. It aims to restructure accountability in the fast-food franchise model. Businesses that fit the \u201c<em>fast food chain<\/em>\u201d definition should monitor its progress closely. This is a potential new obligation for them in New York State.<\/p>\n\n\n\n<p><strong>Note<\/strong>: <em>I&#8217;m not an attorney. Nothing in this article or anywhere on this website should be construed as legal advice.<\/em>  <\/p>\n\n\n\n<h3>FAQ&#8217;s<\/h3>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1762976636435\"><strong class=\"schema-faq-question\">1. Does this bill affect all franchise businesses in New York?<\/strong> <p class=\"schema-faq-answer\">No. This bill is highly specific. It only applies to &#8220;fast food chains&#8221; that operate 50 or more establishments nationally. If a franchise system has fewer than 50 locations, the bill&#8217;s joint liability provisions do not apply.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1762976673146\"><strong class=\"schema-faq-question\">2. What does &#8220;joint and several liability&#8221; mean in the context of this bill?<\/strong> <p class=\"schema-faq-answer\">It means that the franchisor and the franchisee are both legally responsible for the entire amount of any fines or penalties related to a covered violation. The state or an aggrieved party can pursue the franchisor, the franchisee, or both, for 100% of the financial penalty.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1762976699159\"><strong class=\"schema-faq-question\">3. Can a franchisor use their contract to force the franchisee to cover all the liability?<\/strong> <p class=\"schema-faq-answer\">No. The bill explicitly states that any clause in a franchise agreement attempting to waive the franchisor&#8217;s liability or requiring the franchisee to indemnify (reimburse) the franchisor for these violations is void and unenforceable as contrary to public policy.<\/p> <\/div> <\/div>\n\n\n\n<p>(<em>Note: I used an AI tool to help me summarize the proposed law\/bill<\/em>.)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The state of New York has introduced major legislation affecting the quick-service industry. This proposal (Senate Bill S7289), creates the &ldquo;New York State Fast Food Franchisor Accountability Act.&rdquo; It&rsquo;s currently moving through the 2025-2026 Legislative Session. This is important news for the entire franchising sector. Read why. Key Takeaways The law&rsquo;s goal is simple. It [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50713,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[26],"tags":[2416,2417],"class_list":["post-50711","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-franchise-law","tag-new-york-franchise-laws","tag-senate-bill-s7289"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>New York State Fast Food Franchisor Accountability Act &#8212; The Franchise King\u00ae<\/title>\n<meta name=\"description\" content=\"Discover how the New York Fast Food Accountability Act changes liability for franchisors and impacts workplace standards in New York.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.thefranchiseking.com\/new-york-state-senate-bill-s7289\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New York is Trying to Force Big Fast Food Franchises to Share the Risk\" \/>\n<meta property=\"og:description\" content=\"Discover how the New York Fast Food Accountability Act changes liability for franchisors and impacts workplace standards in New York.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.thefranchiseking.com\/new-york-state-senate-bill-s7289\" \/>\n<meta property=\"og:site_name\" content=\"The Franchise King\u00ae\" \/>\n<meta property=\"article:published_time\" content=\"2025-11-13T15:09:12+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-01-14T14:42:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/new-york-fast-food-chain-law.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"1000\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Joel Libava\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/new-york-state-senate-bill-s7289#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/new-york-state-senate-bill-s7289\"},\"author\":{\"name\":\"Joel Libava\",\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/#\\\/schema\\\/person\\\/b560fd324f6df9be52ac875e631beb66\"},\"headline\":\"New York is Trying to Force Big Fast Food Franchises to Share the Risk\",\"datePublished\":\"2025-11-13T15:09:12+00:00\",\"dateModified\":\"2026-01-14T14:42:57+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/new-york-state-senate-bill-s7289\"},\"wordCount\":1168,\"publisher\":{\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/new-york-state-senate-bill-s7289#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.thefranchiseking.com\\\/wp-content\\\/uploads\\\/new-york-fast-food-chain-law.jpg\",\"keywords\":[\"new york franchise laws\",\"Senate Bill S7289\"],\"articleSection\":[\"Legalities in Franchising\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2025\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/#organization\"}},{\"@type\":[\"WebPage\",\"FAQPage\"],\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/new-york-state-senate-bill-s7289\",\"url\":\"https:\\\/\\\/www.thefranchiseking.com\\\/new-york-state-senate-bill-s7289\",\"name\":\"New York State Fast Food Franchisor Accountability Act &#8212; 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Joel is the author of \\\"Become a Franchise Owner!\\\" (Wiley) and \\\"The Definitive Guide to Franchise Research\\\" (Self). Joel's blog, The Franchise King Blog, is the longest-running blog in franchising. Joel also owns and operates The Franchise Attorney Directory. Joel Libava works 1-on-1 as a Franchise Ownership Advisor, and is a prolific writer on all things franchising. Finally, he's been in franchising close to 25 years.\",\"email\":\"joel@thefranchiseking.com\",\"telephone\":\"2168312610\",\"legalName\":\"Franchise Selection Specialists Inc.\",\"foundingDate\":\"2002-01-20\",\"taxID\":\"20-1184045\",\"numberOfEmployees\":{\"@type\":\"QuantitativeValue\",\"minValue\":\"1\",\"maxValue\":\"10\"}},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/#\\\/schema\\\/person\\\/b560fd324f6df9be52ac875e631beb66\",\"name\":\"Joel Libava\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/0c74981307dba3f4970cdf8359a1b2fc6ffe7721a2e3d1001acd9ac59db6ed61?s=96&d=mm&r=pg\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/0c74981307dba3f4970cdf8359a1b2fc6ffe7721a2e3d1001acd9ac59db6ed61?s=96&d=mm&r=pg\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/0c74981307dba3f4970cdf8359a1b2fc6ffe7721a2e3d1001acd9ac59db6ed61?s=96&d=mm&r=pg\",\"caption\":\"Joel Libava\"},\"description\":\"I\u2019m The Franchise King\u00ae, Joel Libava. 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Does this bill affect all franchise businesses in New York?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No. This bill is highly specific. It only applies to \\\"fast food chains\\\" that operate 50 or more establishments nationally. If a franchise system has fewer than 50 locations, the bill's joint liability provisions do not apply.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.thefranchiseking.com\\\/new-york-state-senate-bill-s7289#faq-question-1762976673146\",\"position\":2,\"url\":\"https:\\\/\\\/www.thefranchiseking.com\\\/new-york-state-senate-bill-s7289#faq-question-1762976673146\",\"name\":\"2. 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