N.Y. General Business Law § 680: Legislative findings and declaration of policy

§ 680. Legislative findings and declaration of policy. 1. The

legislature hereby finds and declares that the widespread sale of

franchises is a relatively new form of business which has created

numerous problems in New York. New York residents have suffered

substantial losses where the franchisor or his representative has not

provided full and complete information regarding the

franchisor-franchisee relationship, the details of the contract between

the franchisor and franchisee, the prior business experience of the

franchisor, and other factors relevant to the franchise offered for

sale.

2. It is hereby determined and declared that the offer and sale of

franchises, as defined in this article, is a matter affected with a

public interest and subject to the supervision of the state, for the

purpose of providing prospective franchisees and potential franchise

investors with material details of the franchise offering so that they

may participate in the franchise system in a manner that may avoid

detriment to the public interest and benefit the commerce and industry

of the state. Further, it is the intent of this law to prohibit the sale

of franchises where such sale would lead to fraud or a likelihood that

the franchisor's promises would not be fulfilled.