What is the minimum time period C12 Group must provide a Franchise Disclosure Document to a prospective franchisee in New York before a sale may be made?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 46–137)
What This Means (2025 FDD)
According to the 2025 FDD, C12 Group must comply with New York law regarding the provision of the Franchise Disclosure Document (FDD) to prospective franchisees in New York. New York law mandates that C12 Group provide the FDD to the prospective franchisee at the earliest of three occurrences: the first personal meeting, ten business days before the execution of the franchise or any related agreement, or when any consideration relating to the franchise relationship is paid.
This regulation ensures that potential C12 Group franchisees in New York have adequate time to review the FDD and make informed decisions. The ten-business-day period allows franchisees to carefully consider the terms of the franchise agreement, seek legal or financial advice, and conduct due diligence before committing to the franchise.
The stipulation regarding the first personal meeting ensures that prospective C12 Group franchisees receive the FDD early in the decision-making process, enabling them to assess the opportunity before investing significant time or resources. The requirement related to the payment of any consideration prevents C12 Group from accepting any fees or payments before the franchisee has had sufficient time to review the FDD. These regulations collectively aim to protect prospective franchisees by providing them with the necessary information and time to make well-informed decisions about investing in a C12 Group franchise.