N.Y. Comp. Codes R. & Regs. tit. 13 § 200.9

Current through Register Vol. 46, No. 25, June 18, 2024

Section 200.9 - Filing of sales literature

(a) No pamphlet, circular, form letter, advertisement, sales literature, or advertising communication (hereafter sales literature) addressed to or intended for distribution or communication to prospective franchisees, shall be distributed unless it has been filed with the department prior to distribution.

(b) Sales literature shall be submitted to the department not less than seven days prior to its intended use, and shall be submitted in the form and containing the language and subject matter which will appear in the sales literature addressed or intended for distribution to prospective franchisees.

(c) No sales literature shall include any representation or statement inconsistent with the prospectus on file with the department, and the franchisor shall verify in a writing, submitted with the sales literature, that it is not inconsistent with the filed prospectus.

(d) All sales literature in connection with franchise offerings shall contain the following statement in easily readable print, except as provided herein: "This advertisement is not an offering. An offering can only be made by a prospectus filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law."

(e) The statement required under the foregoing subdivision shall similarly be contained on the cover page of all circulars, flyers, cards, letters and other literature employed in connection with soliciting interests in the franchise offering.

(f) Irrespective of subdivision (d) of this section, in all classified type advertisements not more than five inches long and not more than one column of print wide, and in all broadcast advertising 30 seconds or less in duration, the following statement may be used, in lieu of the statement required in subdivision (d) of this section:

"This offering is made by prospectus only."

(g) Sales literature, as to franchisors registered in this State, but making offers of their franchises from places other than this State, shall not include such literature contained in a bona fide newspaper or other publication of general, regular and paid circulation whose circulation area does not include this State.

N.Y. Comp. Codes R. & Regs. Tit. 13 § 200.9

Amended New York State Register July 3, 2018/Volume XL, Issue 27, eff. 7/3/2018