In New York, what does registration of the Cool Binz franchise by the state imply?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
New York requires that we 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 the payment of any consideration that relates to the franchise relationship.
If COOL BINZ 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 and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and the appropriate State agency Identified in Exhibit E.
Franchisor authorizes the respective state agencies identified on Exhibit A to receive service of process for it in the particular state.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, New York requires that Cool Binz provide the Franchise Disclosure Document (FDD) to prospective franchisees at the earlier of the first personal meeting or 10 business days before the execution of the franchise agreement or the payment of any consideration related to the franchise relationship. This regulation ensures that potential franchisees have sufficient time to review the FDD and make informed decisions.
If Cool Binz fails to deliver the FDD on time, or if the document contains false or misleading statements, or material omissions, it may constitute a violation of federal and state law. Such violations should be reported to the Federal Trade Commission (FTC) and the appropriate state agency identified in Exhibit E of the FDD. This provision aims to protect franchisees from deceptive practices and ensure transparency in the franchising process.
Furthermore, the Cool Binz franchise agreement includes an addendum specifically for use in New York, which modifies certain sections of the standard franchise agreement to comply with New York law. This addendum ensures that franchisees in New York retain all rights and causes of action arising from Article 33 of the General Business Law of the State of New York, which provides additional protections to franchisees. The franchisor also authorizes state agencies listed on Exhibit A to receive service of process in their respective states.