What is the specific section of the Franchise Sale Act that Ledgers must comply with regarding sales?
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' 2025 Franchise Disclosure Document, for franchises governed by New York franchise laws, any sale made must comply with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.). This section outlines the timeframe in which Ledgers must provide the Franchise Disclosure Document (offering prospectus) to a prospective franchisee before a sale can be finalized.
New York law mandates that Ledgers deliver the Franchise Disclosure Document to the prospective franchisee at the earlier of these events: the first personal meeting between the parties, ten business days before the execution of the franchise agreement or any related agreement, or when any consideration is paid concerning the franchise relationship.
This regulation ensures that potential Ledgers franchisees have adequate time and information to make informed decisions before committing to the franchise. It protects franchisees by requiring full disclosure from the franchisor before they are bound by any agreements or payments.