MUNICIPAL NOTIFICATION CHANGES ‐ Effective immediately there are major changes in the 30 day advance municipal notification requirements. Some changes affect the entire state, others affect licensees in New York City and still others affect licensees outside of the five boroughs of New York City. Here is a breakdown of the changes:
STATEWIDE: Municipal notification for original on‐premises applications remains in place statewide;
All licensees must now pay the same $128.00 corporate change fee.
OUTSIDE OF NEW YORK CITY: All alteration and license renewal notification requirements for licensees are eliminated outside of the City of New York.
NEW YORK CITY: Substantial corporate changes (80% ownership interest or more) will now require 30 days prior notification to Community Boards for New York City licensees. Alteration and license renewal notification requirements remain in place for New York City licensees with the exception of off‐premises licensees who will no longer need to notify Community Boards of alterations.
The New York City Health Department requires that restaurants publicly post A, B, or C letter grade cards that summarize their sanitary inspection scores. Not posting a grade card – or posting it incorrectly – is a serious violation that may result in large fines or loss of your permit. To avoid penalties, food service operators and their representatives and attorneys should follow these instructions carefully.
1. Where does the grade card have to be posted?
The grade (or grade pending) card must be posted on a front window, door or outside wall where it is easily seen by people passing by. The card must be within 5 feet of the entrance and from 4 to 6 feet off the ground or floor. If there is no direct entrance to the street, the Health Department sets the place to post the card. The Health Department tracks each grade card by its serial number. It may issue a Notice of Violation to any establishment that fails to post the right card, or posts it in the wrong place.
2. When am I required to post the grade or grade pending card? The restaurant must post the grade or grade pending card as soon as the inspector provides it. If the restaurant receives both a grade card and a grade pending card, the operator has the choice of posting one of these two cards immediately, until it has had the chance for a hearing at the Administrative Tribunal. 3. Are there penalties for failing to post the grade card, or posting it incorrectly? Yes. Not posting a grade card can result in fines of up to $1000. Posting the grade card incorrectly can result in a $200 fine. Repeated violations may result in loss of your permit. 4. How do I get a hearing at the Administrative Tribunal?
Everyone who receives a Notice of Violation has the right to a hearing at the Administrative Tribunal. Your scheduled hearing date is printed on the front of the Notice. Directions for how to respond to the Notice are on the back. 5. I had my hearing, and I was given a new grade card. What should I do with it? When a restaurant receives a grade card at the Administrative Tribunal, it means that the Hearing Examiner’s decision changed the restaurant’s inspection score enough to change its grade.
You must immediately:
• Post the grade card issued by the Tribunal, and
• DESTROY the letter grade card and grade pending card that the inspector gave you
at the inspection. 6. I had my hearing, but I was not given a new grade card. Which card do I post now? If you did not receive a new grade card at the Administrative Tribunal, it means that the Hearing Examiner’s decision did not change the restaurant’s inspection score enough to change its grade.
You must immediately:
• Post the grade card that the inspector gave you at the inspection, and
• DESTROY the grade pending card. 7. My restaurant accepted a settlement offer. Which card do I post now? If you accepted a settlement, your inspection score and grade did not change.
You must immediately:
• Post the grade card that the inspector gave you at the inspection, and
• DESTROY the grade pending card. 8. What if I miss my hearing date at the Administrative Tribunal? If you do not respond to your Notice of Violation by 1) accepting a settlement offer;
2) appearing at the Tribunal on your hearing date; 3) writing to the Tribunal for a hearing by mail; or 4) asking on or before your hearing date for an adjournment:
You must immediately:
• Post the grade card that the inspector gave you at the inspection, and
• DESTROY the grade pending card. 9. I asked for a new hearing date (“adjournment”). What card do I post in the meantime? If this is the first adjournment you requested, you can continue to post your grade card, or grade pending card. If you ask for another adjournment or miss your second hearing date, you must post the letter grade card the inspector gave you at the inspection. 10. What if I receive a default decision? If you received a default decision, it means that you did not respond to your Notice of Violation. You were required to post your grade card on the day you missed the hearing. If your grade card is not posted when you receive a default decision:
You must immediately:
• Post the grade card the inspector gave you at the inspection, and
• DESTROY the grade pending card. 11. Do I have to post the actual grade card? Can I post a photocopy or fax instead? You must always post the actual letter grade card as required (see Question 1). You cannot substitute a photocopy or fax for the real grade card. 12. How do I replace a lost or damaged card? You can get a new card at the Health Department’s Bureau of Food Safety and Community Sanitation, 253 Broadway (between Murray and Warren), 12th Floor, in Manhattan.
The Franchise Disclosure Document (“FDD”), formerly known as the Uniform Franchise Offering Circular (“UFOC”), is a legal document that franchisors must furnish to franchisees in accordance with the Franchise Rule (16 C.F.R. Part 436 which is regulated by the Federal Trade Commission). Franchisors must furnish prospective franchisees with a FDD at least 14 calendar days before the prospective franchisee signs a binding agreement with, or makes any payment to, the franchisor or an affiliate in connection with the proposed franchise sale. The FDD contains material information about a franchise operation and is designed to help franchisees analyze the merits of a franchisor.
GENERAL RULE: Carefully review and negotiate the terms contained in the Franchise Disclosure Document prior to making any investment in a franchise.
All FDDs must contain the following categories:
The Franchisor and Any Predecessors; Litigation History; Bankruptcy (i.e., any franchisees who may have filed); Listing of the Initial Franchise Fee and Other Initial Payments; Other Fees and Expenses; Statement of Franchisee’s Initial Investment; Obligations of Franchisee to Purchase or Lease from Designated Sources; Obligations of Franchisee to Purchase or Lease in Accordance with Specifications or from Authorized Suppliers; Financing Arrangements; Obligations of the Franchisor; Other Supervision, Assistance or Services; Exclusive/Designated Area of Territory; Trademarks, Service Marks, Trade Names, Logo types and Commercial Symbols; Patents and Copyrights; Obligations of the Franchisee to Participate in the Actual Operation of the Franchise Business; Restrictions on Goods and Services Offered by Franchisee; Renewal, Termination, Repurchase, Modification and Assignment of the Franchise Agreement and Related Information; Arrangements with Public Figures; Actual, Average, Projected or Forecasted Franchise Sales, Profits or Earnings; Information Regarding Franchises of the Franchisor; Financial Statements; and Acknowledgment of Receipt by Respective Franchisee.
Please note that I strongly urge you to retain the services of an experienced franchise attorney because although the Franchise Disclosure Document is required by law, no governing body reviews the document for accuracy and/or omissions of fact.
The ABC Law prohibits from selling, serving, delivering or offering to patrons an unlimited number of drinks during any set period of time for a fixed price. The law also requires that licensees prohibit party organizers, promoters, etc., from engaging in this conduct in the licensees’ establishment. The statute also prohibits licensees from creating drink specials which, in the judgment of the Authority, are attempts to circumvent the law. This includes offerings of free drinks, or multiple drinks for free or for the price of a single drink, or for a low initial price followed by a price increment per hour or other period of time.
GENERAL RULE: Unlimited drinks or “All you can drink” specials are illegal in NY.
The SLA does allow 2 for 1, half price and other such specials where the price of a drink is not lower than one-half of the premise’s normal or regular price for the same drink. Section 117-a does not apply to private functions not opened to the public, such as weddings, banquets, or receptions, or other similar functions or to a package of food and beverages where the service of alcoholic beverages is incidental to the event or function. Most recently, a NY bar that violated this rule received a civil penalty in the amount of $10,000.00 and a 15 day suspension of their liquor license.
The New York City Mayor’s Office published a terrific guide that should be read by all indiviudals that own, or plan to own, a restaurant in NYC. Its a terrific resource for the basics of NY restaurant ownership. Here’s the link to the guide:
A New York City landmark restaurant recently settled a suit filed against them for sexual and racial discrimination. The suit was filed by the EEOC against Tavern on the Green. The Commission claimed that Tavern on the Green took part in sexual and racial harassment against their female, black and Hispanic employees. Leon Drogy, a former manager at the restaurant, was reportedly particularly abusive towards female employees. “Verbally, female employees were subjected to repeated comments related to sexual positions, sexual acts and even asked for sexual favors,” says Kam S. Wong, an attorney for the commission. Drogy also reportedly harassed black and Hispanic employees, calling them “ignorant immigrants” and making fun of their accents.
A $2.2 million settlement was reached in the case, which will reportedly be distributed among more than 50 people who were the victims of the abuse.
This has absolutely nothing to do with law but I had to blog on it. It’s actually a fully submerged underwater restaurant called “Ithaa” in the Maldives and its doing very well. I’m thinking might work just as well in New York . . .say the Hudson River. What do you think Hanson? Ripert? Vongerichten? Batali? Any takers?
The ABC Law prohibits from selling, serving, delivering or offering to patrons an unlimited number of drinks during any set period of time for a fixed price. The law also requires that licensees prohibit party organizers, promoters, etc., from engaging in this conduct in the licensees’ establishment. The statute also prohibits licensees from creating drink specials which, in the judgment of the Authority, are attempts to circumvent the law. This includes offerings of free drinks, or multiple drinks for free or for the price of a single drink, or for a low initial price followed by a price increment per hour or other period of time.