2023 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.