NY Gen Bus L § 691 (2021)
2021 New York Laws GBS - General Business Article 33 - Franchises 691 - Civil Remedies.

§  691. Civil remedies. 1. A person who offers or sells a franchise in   violation of section six hundred eighty-three, six  hundred  eighty-four   or  six  hundred  eighty-seven  of  this article is liable to the person   purchasing the franchise for damages and, if such violation  is  willful   and material, for rescission, with interest at six percent per year from   the date of purchase, and reasonable attorney fees and court costs.2.  A  person  may not file or maintain suit under this section if the   franchisee or such person received a written offer before suit, and at a   time when he owned the  franchise,  to  refund  the  consideration  paid   together with interest at six percent per year from the date of payment,   less  the  amount of income earned by the franchisee from the franchise,   conditioned only upon tender by the person of all items received by  him   for  the  consideration  and  not  sold,  and failed to accept the offer   within thirty days of its receipt, provided that the offering  documents   are  submitted to the department for approval at least ten business days   prior to submission to the franchisee. The rescission offer shall recite   the provisions of this section. If the franchise involves a  substantial   building  or  substantial equipment or fixtures and a significant period   of time has elapsed since the sale of the franchise to  the  franchisee,   the  department in approving a rescission offer may approve an equitable   offer recognizing depreciation, amortization, and  other  factors  which   bear  upon  the value of the franchise being returned to the franchisor.   Nothing in this subdivision shall prohibit  settlement  of  any  dispute   arising under or involving claims based on this chapter, with or without   approval of the department.3.  A person who directly or indirectly controls a person liable under   this article, a partner in a  firm  so  liable,  a  principal  executive   officer  or  director  of  a corporation so liable, a person occupying a   similar status or performing similar functions, and  an  employee  of  a   person  so  liable,  who  materially  aids  in  the  act  of transaction   constituting the violation, is also liable jointly  and  severally  with   and   to   the  same  extent  as  the  controlled  person,  partnership,   corporation or employer. It shall be a defense to any action based  upon   such  liability  that the defendant did not know or could not have known   by the exercise of due diligence the facts  upon  which  the  action  is   predicated.4.  An  action  shall not be maintained to enforce a liability created   under this section unless brought before the expiration of  three  years   after the act or transaction constituting the violation.5.  Except  as explicitly provided in this article, civil liability in   favor of  any  private  party  shall  not  arise  against  a  person  by   implication  from or as a result of the violation of a provision of this   article or a rule,  regulation  or  order  hereunder.  Nothing  in  this   article  shall  limit a liability which may exist by virtue of any other   statute or under common law if this article were not in effect.