Is the Checkersrallys Franchise Disclosure Document registered in New York?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
The following states have franchise laws that require that the Franchise Disclosure Document be registered or filed with the state, or be exempt from registration: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
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- Application of Rider. There are circumstances in which an offering made by Franchisor would not fall within the scope of the New York General Business Law, Article 33, such as when the offer and acceptance occurred outside the State of New York. However, an offer or sale is deemed to be made in New York if Franchisee is domiciled, and the franchise will be opened, in New York. Franchisor is required to furnish a New York prospectus to every prospective franchisee who is protected under the New York General Business Law, Article 33.
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- Limitations on Legal Actions. Sections 18.03 and 18.10 shall be amended by adding the following:
- "To the extent required by Article 33 of the General Business Law of the State of New York, all rights and any causes of action arising in Franchisee's 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 provision that the non-waiver provisions of GBL Sections 687.4 and 687.5 be satisfied."
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, New York is one of the states that requires the Franchise Disclosure Document to be registered or filed with the state, or be exempt from registration. This means that Checkersrallys has taken the necessary steps to comply with New York's franchise laws, allowing them to offer franchises in that state.
Furthermore, the FDD includes specific provisions related to New York law. It states that if a Checkersrallys franchisee is domiciled and will open their franchise in New York, the offer or sale of the franchise is deemed to be made in New York. In such cases, Checkersrallys is required to provide a New York prospectus to the prospective franchisee, ensuring they are protected under the New York General Business Law, Article 33.
The Checkersrallys FDD also clarifies that certain sections of the franchise agreement are amended to comply with New York's General Business Law. Specifically, all rights and causes of action arising in the franchisee's favor under Article 33 of the New York General Business Law will remain in force. This ensures that the non-waiver provisions of GBL Sections 687.4 and 687.5 are satisfied, protecting the franchisee's rights under New York law.