Under a traditional franchise analysis, like the federal franchise regulations  or many other state franchise laws, a franchise is any commercial business relationship that satisfies the following three elements:
1. Franchisor provides a trademark or other commercial symbol;
2. Franchisor directly or indirectly exercise a significant amount of control over or provide significant assistance to the franchisee; and
3. Franchisee pays the franchisor a fee of $500 or more during the first six months of operation.
However, New York franchise law is not traditional. It is much broader. Under NY Law , the three elements have been reduced to two elements:
1. Franchisee pays the franchisor, directly or indirectly, a franchise fee; and
a. provides a trademark or other commercial symbol, or
b. provides a marketing plan or system prescribed in substantial part by a franchisor.
Thus, many agreements that might not be a franchise under the traditional analysis become a franchise under NY law, including a simple trademark license where a royalty is being paid.
If you are considering licensing a trademark to a business in New York, you have a few options: (1) having no fee, (2) requesting an exemption from the New York Attorney General, or (3) refusing to grant a license to anyone located in New York.
Please feel free to contact us if you have any questions.
 16 C.F.R. Part 436
 New York Franchise Sales Act, New York General Business Law Sections 680-695.