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N.Y. One
How much does N.Y. One cost?
Initial Investment Range
$32,641.50 to $70,806.50
Franchise Fee
$1,000
This Circular relates to the offer and sale of the right to participate in a two-way direct-connect dispatch transportation service operated by N.Y. One Corporate Car Inc. from its central base in Queens, New York and, in connection therewith, to use N.Y. One Corporate Car Inc. dispatch communications app as well as the use of certain trade names and other products and services related thereto.
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N.Y. One April 23, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: August 22, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
The franchisor explicitly warns its financial condition “calls into question” its ability to provide support. Financial statements in Exhibit B show the company has no cash and its only asset is a large, unsecured loan to affiliates with no repayment terms. This suggests N.Y. One Corporate Car Inc. (“N.Y. One”) is dependent on related companies whose financial health is not disclosed, posing a significant risk to its stability and ability to support you.
Potential Mitigations
- A franchise accountant should scrutinize the financial statements, including the notes on related party transactions, to assess the true financial stability of the entire enterprise.
- Discuss the implications of the franchisor's financial weakness and its reliance on affiliates with your franchise attorney.
- Your business advisor should help you evaluate if the franchise can succeed with potentially limited franchisor support and investment.
High Franchisee Turnover
High Risk
Explanation
Item 20 data reveals an extremely high number of “Ceased Operations” over the past three years. The number of franchisees ceasing operations each year has been over 75% of the total number of franchises at the start of the year. While the franchisor notes these subscribers can resume activity, this massive and persistent churn is a critical red flag. It may indicate systemic problems, a lack of franchisee profitability, or widespread dissatisfaction with the model.
Potential Mitigations
- It is crucial to contact a large number of the former subscribers listed in Exhibit D-1 to understand why they ceased operating.
- A thorough analysis of this turnover data with your accountant is necessary to evaluate the stability and viability of the system.
- Your franchise attorney can help you formulate specific questions for the franchisor regarding these concerning statistics.
Rapid System Growth
Low Risk
Explanation
This risk was not identified in the FDD package. Rapid system growth can strain a franchisor's resources, potentially leading to inadequate support for franchisees. It is important to assess if a franchisor's support infrastructure is keeping pace with its unit expansion.
Potential Mitigations
- Your accountant can review the franchisor's financial statements to see if investments in support infrastructure correspond with growth.
- Speaking with franchisees who joined at different times can provide your business advisor with insight into how support levels have changed over time.
- It is wise to ask your attorney to inquire about the franchisor's specific plans for scaling support services.
New/Unproven Franchise System
High Risk
Explanation
N.Y. One has been operating since 1978, so it is not a new system. However, the business model is unique and the extreme franchisee churn and concerning financial structure present risks similar to those of an unproven system. The viability and support structure appear to be in question, despite the company's long history.
Potential Mitigations
- A deep dive into the company's long but tumultuous history with your business advisor is critical to understanding its current state.
- Your accountant should review the financials to assess the sustainability of the current operating model.
- Legal counsel should be sought to understand the unique risks associated with the “Subscription” model described.
Possible Fad Business
Low Risk
Explanation
This risk was not identified in the FDD package. A fad business is one tied to a fleeting trend, which can create significant risk when the trend fades. Evaluating a business concept's long-term consumer demand and its ability to adapt to market changes is a crucial part of due diligence.
Potential Mitigations
- Engaging a business advisor to research the industry's long-term trends and market stability is a prudent step.
- Your financial advisor can help assess the business model's resilience to economic shifts and changing consumer tastes.
- Reviewing the franchisor's history of innovation with your attorney can provide clues about its adaptability.
Inexperienced Management
Low Risk
Explanation
This risk was not identified in the FDD package. The key executives listed in Item 2 appear to have extensive, long-term experience in the ground transportation industry and with the Company and its affiliates. Inexperienced management can be a major risk, as it can lead to poor strategic decisions and inadequate support.
Potential Mitigations
- Even with experienced leaders, it's beneficial to have a business advisor help you research the recent performance and reputation of the management team.
- Discussing the quality of management's support and strategic direction with current franchisees can provide valuable insight.
- Your attorney can help you investigate if there have been any recent, unlisted changes in key management personnel.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified in the FDD package. Item 1 and Item 2 do not indicate that the franchisor is owned by a private equity firm. Private equity ownership can sometimes lead to a focus on short-term profits over the long-term health of the franchise system, potentially affecting franchisee support and costs.
Potential Mitigations
- It is always a good practice to have your attorney verify the franchisor's ownership structure.
- A business advisor can help you research the reputation of any parent company or major investor.
- Asking current franchisees about any recent changes in ownership or operational philosophy can provide useful context.
Non-Disclosure of Parent Company
High Risk
Explanation
The franchisor, N.Y. One, appears to be a shell entity that relies entirely on affiliates for operations, revenue collection, and payments. The financial statements of these critical parent and affiliate companies, such as Executive Charge Inc. and Executive Transportation Group, are not provided. This creates a significant risk as you cannot assess the financial health of the entities that actually run the system and control the money.
Potential Mitigations
- Your accountant and attorney must review the structure and note the severe limitations caused by the absence of affiliate financial statements.
- It is critical to ask the franchisor why affiliate financials are not provided and to request them for review.
- A business advisor should help you assess the risk of dealing with a company whose operational and financial backbone is not disclosed.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified in the FDD package. The franchisor discloses its own history but does not mention any predecessors from which it acquired the business. Reviewing predecessor history, when applicable, is important as it can reveal inherited issues related to litigation, bankruptcy, or franchisee relations.
Potential Mitigations
- Your attorney can help confirm the corporate history and verify that no predecessor information has been omitted.
- Independent research on the company's origins, with the help of a business advisor, can sometimes uncover relevant historical context.
- Asking long-term franchisees about the history of the brand and any previous ownership structures is a valuable due diligence step.
Pattern of Litigation
Low Risk
Explanation
This risk was not identified in the FDD package. Item 3 states that no litigation is required to be disclosed. A pattern of franchisee-initiated lawsuits alleging fraud or misrepresentation would be a major red flag indicating potential systemic issues with the franchisor's practices.
Potential Mitigations
- Your attorney should still conduct an independent search for litigation involving the franchisor and its principals, as not all disputes may meet the FDD disclosure thresholds.
- Discussing any past or current disputes with a range of franchisees can provide insights that are not in the official disclosure.
- Understanding the dispute resolution process outlined in the franchise agreement is critical, a task your attorney can assist with.
Disclosure & Representation Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
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Financial & Fee Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
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Legal & Contract Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Territory & Competition Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Regulatory & Compliance Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Franchisor Support Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Operational Control Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Term & Exit Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Miscellaneous Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
