13 CRR-NY 200.5NY-CRR
13 CRR-NY 200.5
13 CRR-NY 200.5
200.5 Amendments to franchise offering prospectus.
(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.
13 CRR-NY 200.5
Current through July 31, 2021
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IMPORTANT NOTE REGARDING CONTENT CURRENCY: The "Current through" date indicated immediately above is the date of the most recently produced official NYCRR supplement covering this rule section. For later updates to this section, if any, please: consult editions of the NYS Register published after this date; or contact the NYS Department of State Division of Administrative Rules at [email protected]. See Help for additional information on the currency of this unofficial version of NYS Rules.