§ 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.