Securities Regulation Daily Wrap Up, BROKER-DEALERS—NASAA adopts Model Franchise Broker Registration Act, (May 8, 2026)
Organizations Mentioned:North American Securities Administrators Association
By Jay Fishman, J.D.
The Act closes a regulatory gap in the franchise industry.
The North American Securities Administrators Association, Inc. (NASAA) adopted the NASAA Model Franchise Broker Registration Act after two years of extensive public comment and stakeholder engagement. Before the Act, franchisors were subject to federal and state disclosure requirements, but the third-party brokers who market the franchise opportunities were never clearly regulated.
The new Model Act, however, provides U.S. jurisdictions with a comprehensive framework to register the third-party brokers, thereby ensuring they are held to professional standards. Marni Rock Gibson, NASAA’s current President and Kentucky’s Securities Commissioner, said: “For many individuals, buying a franchise is the largest investment of their lives. They deserve to know exactly with whom they are dealing.”
The NASAA Franchise and Business Opportunities Project Group Chair, Theresa Leets, declared: “This Act fills a critical gap in the franchise sales process. By harmonizing registration and disclosure requirements, we are fostering a fairer marketplace for both honest brokers and the entrepreneurs they serve.”
RegulatoryActivity: BrokerDealers NASAANews