§ 684. Exemptions. 1. The department of law is hereby authorized and\nempowered to exempt by rule or regulation any person, franchise, or\ntransaction from any provision of section six hundred eighty-three of\nthis article or from any rule or regulation thereunder if the department\nfinds that such action is not inconsistent with the public interest or\nthe protection of prospective franchisees.\n 2. The department of law may, upon application and within its\ndiscretion, exempt from the registration requirements of section six\nhundred eighty-three of this article the offer and sale of a franchise\nif:\n (a) The franchisor has a net worth on a consolidated basis, according\nto its most recently audited financial statement, of not less than five\nmillion dollars; or the franchisor has a net worth, according to its\nmost recently audited financial statement, of not less than one million\ndollars and is at least eighty percent owned by a corporation which has\na net worth on a consolidated basis, according to its most recently\naudited financial statement, of not less than five million dollars; and\n (b) The franchisor files with the department of law an application for\nan exemption, on forms and in the manner prescribed by the department,\nand a consent to service of process on the form required by the\ndepartment; and\n (c) The franchisor discloses in writing to each prospective\nfranchisee, at least seven days prior to the execution by the\nprospective franchisee of any binding franchise or other agreement, or\nat least seven days prior to the receipt of any consideration, whichever\noccurs first, the following information:\n (1) 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 transaction with the\nfranchisee.\n (2) The franchisor's principal business address and the name and\naddress of its agent in this state authorized to receive process.\n (3) The business form of the franchisor, whether corporate,\npartnership, or otherwise.\n (4) Such information concerning the identity and business experience\nof persons affiliated with the franchisor as the department may by rule\nprescribe.\n (5) The business experience of the franchisor, including the length of\ntime the franchisor (i) has conducted a business of the type to be\noperated by franchisees, (ii) has granted franchises for such business,\nand (iii) has granted franchises in other lines of business.\n (6) A copy of the typical franchise contract or agreement proposed for\nuse and in use in this state, including all amendments, deletions,\nvariations, and supplements thereto.\n (7) A statement of the franchise fee charged, the proposed application\nof the proceeds of such fee by the franchisor, and the formula by which\nthe amount of the fee is determined if the fee is not uniform and the\nsame in all cases.\n (8) A statement describing any payments or fees other than franchise\nfees that the franchisee is required to pay to the franchisor, including\nroyalties and payments or fees which the franchisor collects in whole or\nin part on behalf of a third party or parties.\n (9) A statement of the conditions under which the franchise agreement\nmay be terminated or renewal refused, or repurchased at the option of\nthe franchisor.\n (10) A statement as to whether, by the terms of the agreement or by\nother device or practice, the franchisee is required to purchase from\nthe franchisor or his designee services, supplies, products, fixtures or\nother goods relating to the establishment or operation of the franchise\nbusiness, together with a description and the terms and conditions\nthereof.\n (11) A statement as to whether, by the terms of the franchise\nagreement or by other device or practice, the franchisee is limited in\nthe goods or services offered by him to his customers.\n (12) A statement of the terms and conditions of any
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