§ 683. Disclosure requirements. 1. It shall be unlawful and prohibited\nfor any person to offer to sell or sell in this state any franchise\nunless and until there shall have been registered with the department of\nlaw, prior to such offer or sale, a written statement to be known as an\n"offering prospectus" concerning the contemplated offer or sale, which\nshall contain the information and representations set forth in and\nrequired by this section. Any uniform disclosure document approved for\nuse by any agency of the federal government or sister state may be\nutilized and sought to be registered, provided that said uniform\ndisclosure documents comply with the provisions of this article.\n 2. The offering prospectus sought to be registered with the department\nof law shall be filed with the department, accompanied by an application\nfor registration on forms prescribed by the department, and shall\ncontain the following:\n (a) The name of the franchisor, the name under which the franchisor is\ndoing or intends to do business, and the name of any parent or\naffiliated company that will engage in business transactions with\nfranchisees.\n (b) The franchisor's principal business address and the name and\naddress of its agent in this state authorized to receive process.\n (c) The business form of the franchisor, whether corporate,\npartnership, or otherwise.\n (d) Such information concerning the identity and business experience\nof persons affiliated with the franchisor as the department of law may\nby rule prescribe.\n (e) A statement as to whether the franchisor and its principals,\nofficers, partners, directors, or any other person identified in the\napplication for registration:\n (1) Has been convicted of a felony, or pleaded nolo contendere to a\nfelony charge, or held liable or enjoined in a civil action by a final\njudgment if such civil action involved fraud, embezzlement, fraudulent\nconversion or misappropriation of property.\n (2) Is subject to any currently effective order of the United States\nsecurities and exchange commission or the securities administrator of\nany state denying the registration of or barring, revoking or suspending\nthe registration of such person as a securities broker or dealer, or\ninvestment advisor, or securities agent or registered representative, or\nis subject to any currently effective order of any national securities\nassociation or national securities exchange, as defined in the\nSecurities and Exchange Act of 1934, suspending or expelling such person\nfrom membership in such association or exchange.\n (3) Is subject to a currently effective order or ruling of the federal\ntrade commission.\n (4) Is subject to any currently effective injunctive or restrictive\norder relating to business activity as a result of an action brought by\na public agency or department, including, without limitation, actions\naffecting a license as a real estate broker or salesman.\n Such statement shall set forth the court, date of conviction or\njudgment, any penalty imposed or damages assessed, or the date, nature\nand issuer of such order.\n (f) The length of time the franchisor: (1) has conducted a business of\nthe type to be operated by the franchisees, (2) has granted franchises\nfor such business, and (3) has granted franchises in other lines of\nbusiness.\n (g) The most recent financial statement of the franchisor, together\nwith a statement of any material changes in the financial condition of\nthe franchisor from the date thereof. The department of law may by rule\nor order prescribe (1) the form and content of financial statements\nrequired under this article, (2) the circumstances under which\nconsolidated financial statements shall be required, and (3) the\ncircumstances under which financial statements shall be audited by\nindependent certified public accountants.\n (h) A statement of the franchise fee charged, the proposed application\nof the proceeds of such fee by the franchiso
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