New York Codes, Rules and Regulations
Title 13 - DEPARTMENT OF LAW
Chapter VII - FRANCHISE OFFERINGS
Part 200 - FRANCHISE OFFERINGS
Section 200.4 - Rules concerning denial, suspension or revocation of franchise sales agent registrations

Universal Citation: 13 NY Comp Codes Rules and Regs ยง 200.4

Current through Register Vol. 46, No. 12, March 20, 2024

(a) The department may deny, suspend or revoke a franchise sales agent's registration upon a finding by the department that the agent has:

(1) made an untrue statement of a material fact in any application, notice, prospectus or report or statement filed with the department under article 33 of the General Business Law;

(2) willfully omitted to state, in any such application, notice, statement, prospectus or report, any material fact which is required to be stated herein, or failed to notify the department of any material change required by article 33 of the General Business Law;

(3) employed any device, scheme or artifice to defraud in the offer or sale of franchises;

(4) made any untrue statement of material fact or omitted to state a material fact necessary in order to have made the statement made, in the light of the circumstances under which they were made, not misleading in the offer or sale of franchises;

(5) engaged in any act, practice or course of business which operates or would operate as a fraud or deceit upon any person in the offer or sale of franchises;

(6) violated any provision of article 33 of the General Business Law or any condition of the effectiveness of the registration of an offering prospectus or of any exemption from the registration provisions of article 33 of the General Business Law; or

(7) required a franchisee to assent to a release, assignment, vacation, waiver or estoppel which would relieve a person from any duty or liability imposed by this Part.

(b) The department may deny, suspend or revoke a franchise sales agent's registration if any court or regulatory body has made a final decision or judgment that the registrant has been guilty of fraudulent conduct.

(c) No finding shall be made hereunder except after a hearing pursuant to the procedures set forth in State Administrative Procedure Act article 3.

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