§ 5-60 Franchises.
RCNY § 5-60
(a)Definitions. Franchise. "Franchise" means a right to use the franchisor's trademark, tradename, brand name, or other mark of identity to suggest a substantial association with the franchisor. Franchisee. "Franchisee" means a person receiving a franchise. Franchisor. "Franchisor" means a person giving a franchise. Subfranchisee. "Subfranchisee" means a person to whom a franchisee gives the right to use a franchise.
(b)Required disclosures.
(1)A franchisee or subfranchisee must conspicuously disclose on a sign and on each sales slip, receipt and contract for more than $50: (i) that the franchisor, franchisee or subfranchisee are separate business entities; and (ii) the legal name and address of the party given the franchise, and the legal name of the franchisee and subfranchisee, if any, disclosed in accordance with 6 RCNY § 5-01 "Legal Name." These disclosures need not be made on credit card receipts if there is a sign conspicuously disclosing them at all cash registers or at the place where credit card transactions occur.
(2)A franchisor, franchisee or subfranchisee must conspicuously disclose: (i) that advertised sales, discounts, or other special offers are available only at participating franchise outlets, if such is the case; (ii) wherever a warranty or guarantee appears, that the terms of the guarantee or warranty apply only to certain franchise outlets, if such is the case; (iii) that there has been a change in ownership of the franchise outlet, if such is the case, unless upon the change of ownership the name of the franchise was substantially altered. The disclosure required by 6 RCNY § 5-60(b)(2)(iii) need only be made during the first ninety days after the transfer of ownership.
(c)Partial exemption. A franchisee or subfranchisee need not make the disclosures otherwise required by 6 RCNY §§ 5-60(b)(1) and 5-60(b)(2)(iii) if the franchisor is liable to customers of the franchisee or subfranchisee for items sold by the franchisee or subfranchisee.
