Section 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.