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Oct 04 2012

NYSLA Conducts New York City Underage Sweep

The New York State Liquor Authority (SLA) recently concluded an underage sting operation in New York City where SLA investigators sent underage volunteer decoys into 239 licensed premises in all five New York City boroughs. In total, the decoys were able to purchase alcohol at an astounding 124 establishments.  The sting was conducted from March 29 through April 5, 2012.

The outcome of this sting is surprising.  More than half of the premises that were raided had violated the law and served alcohol to minors.  These violations are accompanied by monetary penalties and worse. For a first offense, a Licensee may be able to get away with paying a fine in the amount of $2,500.00 or so to the SLA to settle the charge . . .but if it is not their first violation, they may be looking at having a costly suspension or revocation hearing at the SLA.

However, the good news is that avoiding these violations are very easy.  Licensee’s must (i) train their employees as to what forms of ID are acceptable; (ii) insist that their employees require valid ID from all individuals that appear to be less than the age of 45 (just to safe) and (iii) inform employees that they are subject to job termination should they fail to properly check ID.

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Nov 08 2011

NEW YORK STATE LIQUOR AUTHORITY CHANGE OF OWNERSHIP APPLICATIONS NOW REQUIRE PRIOR NOTICE TO COMMUNITY BOARD

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.

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Dec 01 2009

THE FRANCHISE DISCLOSURE DOCUMENT: Investigate Before You Invest

franchise-businessThe 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. 

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Aug 02 2009

ALL YOU CAN DRINK . . .NOT IN NY!

unlimited_drinks_NYSLA

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.

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Feb 05 2009

NYC RESTAURANT OWNERS MANUAL

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:

http://www.nyc.gov/html/records/pdf/govpub/2737nycrestaurantguide-81606.pdf

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Apr 30 2008

TAVERN ON THE GREEN SETTLES SEX HARASSMENT SUIT

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.

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Apr 03 2008

UNDERWATER RESTAURANT

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?

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