conditional

To what extent is each provision of the amendment effective regarding Bang Cookies, concerning the jurisdictional requirements of the New York General Business Law?

Bang_Cookies Franchise · 2024 FDD

Answer from 2024 FDD Document

    1. There are circumstances in which an offering made by Bang Cookies Franchise LLC would not fall within the scope of the New York General Business Law, Article 33, such as when the offer and acceptance occurred outside the State of New York. However, an offer or sale is deemed made in New York if you are domiciled in New York or the Outlet will be opening in New York. Bang Cookies Franchise LLC is required to furnish a New York prospectus to every prospective franchisee who is protected under the New York General Business Law, Article 33.
    1. Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the New York General Business Law, are met independently without reference to this amendment.

Source: Item 23 — RECEIPTS (FDD pages 56–245)

What This Means (2024 FDD)

According to Bang Cookies's 2024 Franchise Disclosure Document, the New York Franchise and Development Agreement Amendment addresses the requirements of the New York General Business Law, Article 33, Sections 680 through 695. The amendment modifies specific articles within the Franchise Agreement to ensure compliance with New York law. These modifications include supplementing subarticles related to conditions for approval of transfer and conditions for renewal, ensuring that all rights and causes of action arising in favor of the franchisee under the New York General Business Law remain in force. This is intended to satisfy the non-waiver provisions of N.Y. Gen. Bus. Law Sections 687.4 and 687.5.

Furthermore, the effectiveness of each provision within the amendment is contingent upon meeting the jurisdictional requirements of the New York General Business Law independently, without relying on the amendment itself. This means that for the amendment to apply, the offer and acceptance of the franchise must occur within New York, or the franchisee must be domiciled in New York, or the Bang Cookies outlet must be opening in New York. Bang Cookies is obligated to provide a New York prospectus to every prospective franchisee protected under the New York General Business Law, Article 33.

In practical terms, this ensures that Bang Cookies franchisees in New York retain all rights and causes of action afforded to them under New York law, preventing any unintentional waiver of these rights through the franchise agreement. The amendment clarifies that certain provisions of the franchise agreement are modified to comply with New York law, but only if the franchisee meets the jurisdictional requirements of that law. This offers additional protection to franchisees operating within New York by ensuring their rights are upheld under state law.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.