§ 680 — Legislative findings and declaration of policy

§ 680. Legislative findings and declaration of policy. 1. The\nlegislature hereby finds and declares that the widespread sale of\nfranchises is a relatively new form of business which has created\nnumerous problems in New York. New York residents have suffered\nsubstantial losses where the franchisor or his representative has not\nprovided full and complete information regarding the\nfranchisor-franchisee relationship, the details of the contract between\nthe franchisor and franchisee, the prior business experience of the\nfranchisor, and other factors relevant to the franchise offered for\nsale.\n 2. It is hereby determined and declared that the offer and sale of\nfranchises, as defined in this article, is a matter affected with a\npublic interest and subject to the supervision of the state, for the\npurpose of providing prospective franchisees and potential franchise\ninvestors with material details of the franchise offering so that they\nmay participate in the franchise system in a manner that may avoid\ndetriment to the public interest and benefit the commerce and industry\nof the state. Further, it is the intent of this law to prohibit the sale\nof franchises where such sale would lead to fraud or a likelihood that\nthe franchisor's promises would not be fulfilled.\n