What is the relevance of Exhibit A to the New York FDD amendment for Bang Cookies?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
- The following information is added to the cover page of the Franchise Disclosure Document:
INFORMATION COMPARING FRANCHISORS IS AVAILABLE. CALL THE STATE ADMINISTRATORS LISTED IN EXHIBIT A OR YOUR PUBLIC LIBRARY FOR SOURCES OF INFORMATION. REGISTRATION OF THIS FRANCHISE BY NEW YORK STATE DOES NOT MEAN THAT NEW YORK STATE RECOMMENDS IT OR HAS VERIFIED THE INFORMATION IN THIS FRANCHISE DISCLOSURE DOCUMENT. IF YOU LEARN THAT ANYTHING IN THE FRANCHISE DISCLOSURE DOCUMENT IS UNTRUE, CONTACT THE FEDERAL TRADE COMMISSION AND NEW YORK STATE DEPARTMENT OF LAW, BUREAU OF INVESTOR PROTECTION AND SECURITIES, 28 LIBERTY STREET, 21ST FLOOR, NEW YORK, NEW YORK 10005.
THE FRANCHISOR MAY, IF IT CHOOSES, NEGOTIATE WITH YOU ABOUT ITEMS COVERED IN THE FRANCHISE DISCLOSURE DOCUMENT. HOWEVER, THE FRANCHISOR CANNOT USE THE NEGOTIATING PROCESS TO PREVAIL UPON A PROSPECTIVE FRANCHISEE TO ACCEPT TERMS WHICH ARE LESS FAVORABLE THAN THOSE SET FORTH IN THIS FRANCHISE DISCLOSURE DOCUMENT.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, Exhibit A contains a list of state administrators that prospective franchisees in New York can contact for information to compare franchisors. The amendment to the FDD cover page for New York registration clarifies that this registration does not constitute a recommendation or verification of the information within the document by New York State.
This means that while Bang Cookies is registered to offer franchises in New York, potential franchisees are encouraged to conduct their own due diligence. They should not rely solely on the state's registration as an endorsement of the franchise opportunity. Instead, they should utilize resources like the state administrators listed in Exhibit A to gather additional information and make informed decisions.
Furthermore, the amendment advises franchisees to contact the Federal Trade Commission and the New York State Department of Law if they find any untrue information in the FDD. It also states that Bang Cookies may negotiate terms with prospective franchisees but cannot impose terms less favorable than those already outlined in the FDD.