What New York law governs the sale of Caring Transitions franchises?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
The foregoing choice of law should not be considered a waiver of any right conferred upon the franchisor or upon the franchisee by Article 33 of the General Business Law of the State of New York
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- 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.
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- 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 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 earlier 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. 7. 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 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 earlier 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.
NEW YORK ADDENDUM TO FRANCHISE AGREEMENT
The following terms amend the Franchise Agreement to which this addendum is attached, for the purpose of complying with the New York General Business Law and the New York State Franchise Regulations, and are hereby incorporated into the Franchise Agreement by this reference. The terms in this addendum control in the event of conflicting terms in the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the sale of franchises in New York is governed by Article 33 of the General Business Law of the State of New York. Specifically, Section 683(8) of the Franchise Sales Act (N.Y. Gen. Bus. L. § 680 et seq.) dictates the timeframe in which the Franchise Disclosure Document must be provided to prospective franchisees before a sale can occur.
The FDD clarifies that New York law mandates that Caring Transitions provide the Franchise Disclosure Document to potential franchisees at the earlier of three occurrences: the first personal meeting, ten business days before the execution of the franchise agreement, or when any consideration relating to the franchise relationship is paid. This regulation ensures that franchisees have adequate time to review the document before committing to the franchise.
Furthermore, the Franchise Agreement includes a New York Addendum to ensure compliance with the New York General Business Law and the New York State Franchise Regulations. This addendum modifies the Franchise Agreement where necessary to align with New York law, and its terms take precedence in case of any conflicts with the standard Franchise Agreement. The FDD also states that no statement signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by the franchisor.