In New York, when must Carls Jr. provide the disclosure document to a prospective franchisee?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
New York requires CJR to give you this disclosure document at the earlier of the first personal meeting or 10 business days before the execution of the franchise or other agreement or payment of any consideration that relates to the franchise relationship.
If CJR does not deliver this disclosure document on time or if it contains a false or misleading statement, or a material omission, a violation of federal law and state law may have occurred and should be reported to the Federal Trade Commission, Washington, DC 20580 and to the appropriate state administrator listed in Exhibit A.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 75)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, New York requires that Carls Jr. provide the disclosure document to a prospective franchisee at the earlier of two instances. These instances are the first personal meeting between Carls Jr. and the prospective franchisee, or 10 business days before the execution of the franchise or any other agreement, or before any payment of consideration related to the franchise relationship.
This regulation is designed to ensure that potential franchisees in New York have ample time to review the FDD and seek professional advice before making any binding commitments or payments. The "earlier of" condition is crucial, as it prioritizes whichever event occurs first, thus maximizing the protection afforded to the franchisee. This requirement is more stringent than the federal standard of 14 calendar days before signing an agreement or making a payment, reflecting New York's commitment to protecting franchisees.
Failure by Carls Jr. to deliver the disclosure document on time, or if the document contains false, misleading statements, or material omissions, may constitute a violation of both federal and state law. In such cases, the FDD advises that the prospective franchisee should report the violation to the Federal Trade Commission in Washington, DC, and to the appropriate state administrator listed in Exhibit A of the FDD. This provision underscores the importance of accurate and timely disclosure in the franchise sales process.