What New York law governs the timing of sales related to the Ledgers franchise?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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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.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, New York General Business Law § 683(8) governs the timing of franchise sales. Specifically, this law, also known as the Franchise Sales Act (N.Y. Gen. Bus. L. § 680 et seq.), dictates when Ledgers must provide a Franchise Disclosure Document to prospective franchisees before a sale can occur.
New York law mandates that Ledgers provide the Franchise Disclosure Document to the prospective franchisee at the earlier of three occurrences: the first personal meeting, ten business days before the execution of the franchise or any other agreement, or the payment of any consideration related to the franchise relationship. This regulation ensures that potential franchisees have adequate time to review the FDD and make informed decisions before committing to the franchise.
This requirement is designed to protect prospective Ledgers franchisees by giving them sufficient time to evaluate the opportunity and seek professional advice. Failing to deliver the Disclosure Document on time or if it contains false, misleading, or materially omissive information, a violation of federal and state law may have occurred and should be reported to the Federal Trade Commission and the appropriate state agency.