What is the effect of the non-waiver provisions of General Business Law Sections 687(4) and 687(5) on the 1-800-GOT-JUNK? franchise agreement?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
However, to the extent required by applicable law, all rights you enjoy and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; this proviso intends that the non-waiver provisions of General Business Law Sections 687(4) and 687(5) be satisfied.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 FDD, for franchisees in New York, the non-waiver provisions of General Business Law Sections 687(4) and 687(5) ensure that franchisees retain all rights and causes of action arising from Article 33 of the General Business Law of the State of New York and its regulations. This means that 1-800-GOT-JUNK? cannot enforce any waivers of these rights that a franchisee might have signed.
Specifically, this provision is intended to ensure that the non-waiver provisions of General Business Law Sections 687(4) and 687(5) are satisfied. This protects the franchisee by preventing 1-800-GOT-JUNK? from using any agreement or acknowledgment to waive claims related to state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives.
For a prospective 1-800-GOT-JUNK? franchisee in New York, this addendum provides an additional layer of legal protection. It ensures that certain rights under New York law cannot be waived, regardless of what the franchise agreement might otherwise state. This can be particularly important in disputes or disagreements with the franchisor, as the franchisee retains the ability to pursue legal remedies under state law without being bound by potentially disadvantageous waivers.