New York Codes, Rules and Regulations
Title 13 - DEPARTMENT OF LAW
Chapter VII - FRANCHISE OFFERINGS
Part 200 - FRANCHISE OFFERINGS
Section 200.5 - Amendments to franchise offering prospectus
Universal Citation: 13 NY Comp Codes Rules and Regs ยง 200.5
Current through Register Vol. 45, No. 52, December 27, 2023
(a) In compliance with section 683.9 of the General Business Law, a franchisor shall promptly notify the Department of Law, by application to amend its offering, of any material changes in the information contained in the prospectus as originally submitted or amended.
(b) Material change, as used in section 683.9 of the General Business Law, includes but is not limited to:
(1) the termination,
closing, or failure to renew, during a three-month period, of the lesser of 10,
or 10 percent, of the franchises of a franchisor, regardless of
location;
(2) a purchase by the
franchisor in excess of five percent of its existing franchises during six
consecutive months;
(3) a change in
the franchise fees charged by the franchisor; and
(4) any significant adverse change in the
business condition of the franchisor or in any of the following:
(i) the obligations of the franchisee to
purchase items from the franchisor or its designated sources;
(ii) limitations or restrictions on the goods
or services which the franchisee may offer to its customers;
(iii) the obligations to be performed by the
franchisor;
(iv) the franchise
contract or agreements, including amendments thereto;
(v) the franchisor's accounting system
resulting in a five percent or greater change in its net profit or loss in any
six-month period; or
(vi) the
service, product or model line.
(5) audited financial statements of the
preceding fiscal year.
Amended New York State Register July 3, 2018/Volume XL, Issue 27, eff. 7/3/2018
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