factual

Does the C12 Group FDD specify any requirements for prospective franchisees in New York?

C12_Group Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 23: RECEIPTS]

REQUIRED BY STATE OF NEW YORK

FOR PROSPECTIVE PURCHASERS IN THE STATE OF NEW YORK

  1. The following information is added to the cover page of the Franchise DisclosureDocument:

INFORMATION COMPARING FRANCHISORS IS AVAILABLE. CALL THE STATE ADMINISTRATORS LISTED IN EXHIBIT C OR YOUR PUBLIC LIBRARY FOR SERVICES OR 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 THIS FRANCHISE DISCLOSURE DOCUMENT IS UNTRUE, CONTACT THE FEDERAL TRADE COMMISSION AND THE APPROPRIATE STATE OR PROVINCIAL AUTHORITY. 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.

  1. The following is added at the end of Item 3:

Except as provided above, with regard to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark: [Item 23: RECEIPTS]

The foregoing choice of law should not be considered a waiver of any rights conferred upon the franchisor or upon the franchisee by Article 33 of the General Business Law of the State of New York.

    1. Franchise Questionnaires and Acknowledgements--No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise. 7.
    1. 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 Rev. April 2, 2024 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.

[Item 23: RECEIPTS]

  1. The following is added to the end of the "Summary" sections of Item 17(c), titled "Requirements for franchisee to renew or extend," and Item 17(m), entitled "Conditions for franchisor approval of transfer":

However, to the extent required by applicable law, all rights you enjoy and any causes of action arising in your favor from the provisions of Article 33 of the General Business law of the state of New York and the regulations issued thereunder shall remain in force; it being the intent of this proviso that the non-waiver provisions of General Business law Sections 687.4 and 687.5 be satisfied.

  1. The following language replaces the "Summary" section of Item 17(d), titled "Termination by franchisee":

You may terminate the agreement on any grounds available by law.

  1. The following is added to the end of the "Summary" sections of Item 17(v), titled "Choice of forum," and Item 17(w), titled "Choice of law":

The foregoing choice of law should not be considered a waiver of any rights conferred upon the franchisor or upon the franchisee by Article 33 of the General Business Law of the State of New York.


[Item 23: RECEIPTS]

STATE OF NEW YORK, NYS Department of Law, Investor Protection Bureau, 28 Liberty St. 21st Floor, New York, NY 10005; Telephone: (212) 416-8222. Agent of Service of Process: Secretary of State, 99 Washington Ave., Albany, NY 12231.

Source: Item 23 — RECEIPTS (FDD pages 46–137)

What This Means (2025 FDD)

According to the 2025 C12 Group FDD, there are specific requirements and disclosures for prospective franchisees in the State of New York. The FDD highlights that information comparing franchisors is available by contacting state administrators or public libraries, and registration in New York does not imply endorsement by the state. It also states that the franchisor may negotiate terms, but cannot force a franchisee to accept terms less favorable than those in the FDD. Prospective franchisees are advised to contact the Federal Trade Commission and appropriate state authorities if they find any untrue information in the document.

Additionally, the C12 Group FDD specifies that New York law requires the franchisor to provide the Franchise Disclosure Document 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 related to the franchise relationship. This ensures that prospective franchisees have adequate time to review the document before making any commitments.

The FDD also clarifies that the choice of law should not waive any rights conferred to the franchisor or franchisee under Article 33 of the General Business Law of New York. Furthermore, any statement signed by a franchisee cannot waive claims under state franchise law, including fraud, or disclaim reliance on statements made by the franchisor. The C12 Group FDD also provides the contact information for the New York State Department of Law, Investor Protection Bureau, for further assistance.

Disclaimer: This information is extracted from the 2025 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.