For Atwell Suites, what action must be taken with the Receipt page at the end of the Franchise Disclosure Document?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Receipts--Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting, ten (10) business days before the execution of the franchise or other agreement, or the payment of any consideration that relates to the franchise relationship.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
The 2025 Atwell Suites Franchise Disclosure Document includes information regarding receipts specifically for prospective franchisees in New York. According to New York law, Atwell Suites must provide the Franchise Disclosure Document to a prospective franchisee at the earliest of the first personal meeting, ten business days before the execution of the franchise or other agreement, or the payment of any consideration that relates to the franchise relationship. This ensures that potential franchisees have ample time to review the document and make informed decisions.
This requirement is in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which outlines the necessary timeframe for providing the Franchise Disclosure Document before a sale can be finalized. The law aims to protect franchisees by ensuring they receive critical information upfront, allowing them to seek legal and financial advice before committing to the franchise.
Therefore, Atwell Suites franchisees in New York should be aware of these specific timing requirements to ensure compliance with state law. Franchisees should consult with a legal professional to fully understand their rights and obligations under the New York Franchise Sale Act.