When is an offer or sale of a Checkersrallys franchise deemed to be made in New York?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- 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.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, an offer or sale of a franchise is considered to be made in New York if the franchisee is domiciled in New York and the franchise will be opened in New York. This holds true regardless of whether the actual offer and acceptance occurred outside of New York state.
Checkersrallys is obligated to provide a New York prospectus to every prospective franchisee who is protected under the New York General Business Law, Article 33. This ensures that franchisees operating in New York receive the full protections and disclosures required by New York law.
This provision is important for prospective franchisees as it clarifies the conditions under which New York franchise laws apply, ensuring that Checkersrallys franchisees who are residents of New York and operate their franchises there are entitled to the rights and protections afforded by New York's General Business Law.