Is the Bang Cookies Franchise Disclosure Document effective in New York?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Nothing in this Agreement should be considered a waiver of any right conferred upon franchisee by New York General Business Law, Sections 680-695.
-
- 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.
-
- 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.
IN WITNESS WHEREOF, the parties have duly executed and delivered this New York amendment to the Bang Cookies Franchise LLC Franchise Agreement and, if applicable, the Development Agreement on the same date as the Franchise Agreement and Development Agreement were, respectively, executed.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the document is effective in New York. The FDD includes a New York FDD Amendment, indicating specific modifications and disclosures tailored to comply with New York General Business Law, Article 33, Sections 680 through 695. This amendment ensures that prospective franchisees in New York receive the information required by New York law. The document explicitly states that an offer or sale is deemed to be made in New York if the franchisee is domiciled in New York or the Bang Cookies outlet will be opening in New York. Bang Cookies is required to furnish a New York prospectus to every prospective franchisee who is protected under the New York General Business Law, Article 33.
Several provisions within the Franchise Agreement are amended to ensure compliance with New York law. For instance, the amendment clarifies that rights and causes of action arising in favor of the franchisee under New York General Business Law Sections 680-695 remain in force, satisfying the non-waiver provisions of N.Y. Gen. Bus. Law Sections 687.4 and 687.5. This means that franchisees do not waive their rights under New York law by entering into the franchise agreement. Additionally, the FDD cover page includes specific language about where prospective franchisees can find information comparing franchisors and a disclaimer that registration by New York State does not mean the state recommends the franchise or has verified the information in the FDD.
The inclusion of a New York amendment and specific references to New York General Business Law indicate that Bang Cookies has taken steps to ensure the FDD is effective and compliant in New York. Prospective franchisees in New York should carefully review the New York amendment in conjunction with the rest of the FDD to fully understand their rights and obligations under New York law. This includes understanding the conditions under which the New York General Business Law applies and the specific protections it offers to franchisees.
It is important for prospective Bang Cookies franchisees in New York to consult with legal counsel to fully understand the implications of the Franchise Agreement and the New York amendment. This will help ensure they are aware of their rights and obligations under both the franchise agreement and New York law. The FDD also advises franchisees to contact the Federal Trade Commission and the New York State Department of Law if they believe anything in the FDD is untrue.