Does the choice of law provision in the 1-800-GOT-JUNK? franchise agreement waive any rights conferred upon the franchisor or the franchisee by Article 33 of the General Business Law of the State of New York?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
y a franchisee”: You may terminate the agreement on any grounds available by law. 5. The following is added to the end of the “Summary” sections of Item 17(v), titled “Choice of forum,” and Item 17(w), titled “Choice of law”: The foregoing choice of law should not be considered a waiver of any right conferred upon the franchisor or the franchisee by Article 33 of the General Business Law of the State of New York. 6. Franchise Questionnaires and Acknowledgements — No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise. 7. Receipts — Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting, ten (10) business days before the execution of the franchise or other agreement, or the payment of any consideration that relates to the franchise relationship.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, the choice of law provision in the franchise agreement does not waive any rights conferred upon the franchisor or the franchisee by Article 33 of the General Business Law of the State of New York. Specifically, the FDD states that the choice of law should not be considered a waiver of any right conferred upon either party by Article 33 of the General Business Law of the State of New York. This ensures that both 1-800-GOT-JUNK? and the franchisee retain all rights granted to them under New York's franchise laws, regardless of the choice of law specified in the agreement. This protection is particularly relevant for franchisees, as it prevents the franchisor from using the choice of law provision to circumvent New York's franchise regulations.
This provision is further reinforced by the statement that no statement, questionnaire, or acknowledgment signed by a franchisee can waive any claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by the franchisor. This ensures that franchisees cannot inadvertently waive their rights through standard documents or acknowledgments. This protection is crucial because it prevents 1-800-GOT-JUNK? from using standardized forms to undermine the franchisee's legal rights under New York law.
The New York addendum to the 1-800-GOT-JUNK? Franchise Disclosure Document and Franchise Agreement also includes an acknowledgment that the state law addendum supersedes any inconsistent portion of the Franchise Agreement or Franchise Disclosure Document. This acknowledgment is effective only to the extent required by valid applicable state law and only for as long as the state law remains in effect. This ensures that the protections afforded by New York law take precedence over any conflicting terms in the franchise agreement, providing additional security for franchisees operating in New York.