§ 680. Legislative findings and declaration of policy. 1. The legislature hereby finds and declares that the widespread sale of franchises is a relatively new form of business which has created numerous problems in New York. New York residents have suffered substantial losses where the franchisor or his representative has not provided full and complete […]
§ 681. Definitions. 1. “Advertisement” includes any written or printed communication, or any communication by means of recorded telephone messages or spoken on radio, television, or similar communications media, published in connection with an offer or sale of a franchise. 2. “Department” means the department of law. 3. “Franchise” means a contract or agreement, either […]
§ 682. Scope. The disclosure requirements mandated by this article apply to all written or oral arrangements between a franchisor and franchisee in connection with the offer or sale of a franchise, including, but not limited to, the franchise offering, the franchise agreement, sales of goods or services, leases and mortgages of real or personal […]
§ 683. Disclosure requirements. 1. It shall be unlawful and prohibited for any person to offer to sell or sell in this state any franchise unless and until there shall have been registered with the department of law, prior to such offer or sale, a written statement to be known as an “offering prospectus” concerning […]
§ 684. Exemptions. 1. The department of law is hereby authorized and empowered to exempt by rule or regulation any person, franchise, or transaction from any provision of section six hundred eighty-three of this article or from any rule or regulation thereunder if the department finds that such action is not inconsistent with the public […]
§ 685. Escrows and impoundments. If the department of law finds that the applicant for registration has failed to demonstrate that adequate financial arrangements have been made to fulfill obligations to provide real estate, improvements, equipment, inventory, training, or other items included in the offering, the department may require the escrow or impoundment of franchise […]
§ 686. Designation of secretary of state as agent for service of process; service of process. Any person who shall offer to sell or sell a franchise in this state as a franchisor, subfranchisor or franchise sales agent shall be deemed to have irrevocably appointed the secretary of state as his or its agent upon […]
§ 687. Fraudulent and unlawful practices. 1. It is unlawful for any person to make any untrue statement of a material fact in any application, notice, statement, prospectus or report filed with the department under this article, or wilfully to omit to state in any such application, notice, statement, prospectus or report any material fact […]
§ 688. Investigations. 1. Whenever it shall appear to the department of law, either upon complaint or otherwise, that any person has violated any provision of this article, the department: (a) may make such investigations within or outside of this state as it deems necessary to determine whether any person has violated any provision of […]
§ 689. Action by the department of law. 1. Whenever the department shall believe from evidence satisfactory to it that any person has engaged in or is engaged in or is about to engage in any practice or transaction heretofore referred to as and declared to be an unlawful or a fraudulent practice, it may […]
§ 690. Violations and penalties. Any person who knowingly violates any of the provisions of this article or any rule or regulation issued thereunder shall be guilty of a class A misdemeanor punishable by a fine of not more than one thousand dollars, or imprisonment for not more than one year, or both.
§ 691. Civil remedies. 1. A person who offers or sells a franchise in violation of section six hundred eighty-three, six hundred eighty-four or six hundred eighty-seven of this article is liable to the person purchasing the franchise for damages and, if such violation is willful and material, for rescission, with interest at six percent […]
§ 692. Enforcement by attorney general. 1. The department may prosecute every person charged with a criminal offense in violation of this article and regulations issued thereunder. In all such proceedings, the department may appear before any court of record or any grand jury and perform all the duties in respect of such actions or […]
§ 693. Immunity. Upon any investigation or proceeding before the department, or in any criminal proceeding before any court or grand jury, pursuant to or for a violation of any provision of this article, the department or the court or grand jury may confer immunity in accordance with the applicable provisions of the criminal procedure […]
§ 694. Administration. 1. The department shall charge and collect the fees fixed by this section. (a) The fee for filing an application for registration of an offering prospectus under subdivision two of section six hundred eighty-three of this article is seven hundred fifty dollars. (b) The fee for filing an amendment to any registered […]
§ 695. Separability clause; construction. 1. If any part or provision of this article or the application thereof to any person or circumstances be adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision or application directly involved in the controversy in which such judgment […]
