N.Y. General Business Law 199-B – Disclosures to prospective dealers
§ 199-b. Disclosures to prospective dealers. A distributor shall disclose in writing to any prospective dealer the following information, before any franchise is entered into:
Terms Used In N.Y. General Business Law 199-B
- Dealer: means any person engaged in the retail sale of motor fuels for use in motor vehicles under a franchise entered into with a distributor. See N.Y. General Business Law 199-A
- Distributor: means any person engaged in the sale, consignment, or distribution of motor fuels to dealers. See N.Y. General Business Law 199-A
- Franchise: means any agreement between a distributor and a dealer under which the dealer is granted the right to use a trademark, trade name, service mark, or other identifying symbol or name owned by the distributor, or to which the distributor has the right to authorize the use thereof, and is furnished by the distributor with products to be sold at retail under such trademark, trade name, service mark, or other identifying symbol or name or any agreement between a distributor and a dealer under which the dealer is granted the right to occupy or use premises or facilities owned, leased, or controlled by the distributor, for the purpose of engaging in the retail sale of motor fuels of the distributor, provided that an agreement by one distributor to lease premises or facilities to another distributor shall not constitute a franchise. See N.Y. General Business Law 199-A
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
1. The gallonage volume history, if any, of the location under negotiation for and during the three year period immediately past or for the entire period which the location has been supplied by the distributor, whichever is shorter.
2. The name and last known address of the previous dealer or dealers for the last three years, or for and during the entire period which the location has been supplied by the distributor, whichever is shorter, and the reason or reasons for the termination of each dealer franchise.
3. Any legally binding commitments for the sale, demolition or other disposition of the location.
4. The training programs, if any, and the specific goods and services the distributor will provide for and to the dealer.
5. Full disclosure of any and all obligations which will be required of the dealer, including but not limited to, any obligation to exclusively deal in any of the products of the distributor, its subsidiaries or any other company or any advertising and promotional items that the dealer must accept.
6. Full disclosure of all restrictions on the sale, transfer, renewal and termination of the franchise.