Does the New York addendum to the 1-800-GOT-JUNK? Franchise Disclosure Document supersede portions of the Franchise Agreement?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
ed: Date Signed: By: By: Title: Title: Date Signed: Date Signed: 4897-7398-7397.1 NEW YORK NEW YORK ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT AND FRANCHISE AGREEMENT The following modifications are to the 1-800-GOT-JUNK? LLC Franchise Disclosure Document and may supersede, to the extent then required by valid applicable state law, certain portions of the Franchise Agreement dated __________________, 20. 1. The following information is added to the cover page of the Franchise Disclosure Document: INFORMATION COMPARING FRANCHISORS IS AVAILABLE. CALL THE STATE ADMINISTRATORS LISTED IN EXHIBIT D OR YOUR PUBLIC LIBRARY FOR RESOURCES OR INFORMATION. REGISTRATION OF THIS FRANCHISE BY NEW YORK STATE DOES NOT MEAN THAT NEW YORK STATE RECOMMENDS IT OR HAS VERIFIED THE INFORMATION IN THIS FRANCHISE DISCLOSURE DOCUMENT. IF YOU LEARN ANYTHING IN THIS FRANCHISE DISCLOSURE DOCUMENT IS UNTRUE, CONTACT THE FEDERAL TRADE COMMISSION AND THE APPROPRIATE STATE OR PROVINCIAL AUTHORITY. THE FRANCHISOR MAY, IF IT CHOOSES, NEGOTIATE WITH YOU ABOUT ITEMS COVERED IN THE FRANCHISE DISCLOSURE DOCUMENT. HOWEVER, THE FRANCHISOR CANNOT USE THE NEGOTIATING PROCESS TO PREVAIL UPON A PROSPECTIVE FRANCHISEE TO ACCEPT TERMS THAT ARE LESS FAVORABLE THAN THOSE SET FORTH IN THIS FRANCHISE DISCLOSURE DOCUMENT. 2. The following is to be added at the end of Item 3: Except as provided above, the following applies to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor’s principal trademark: A. No such party has an administrative, criminal, or civil action pending against that person alleging: a felony, a violation of a franchise, antitrust, or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations. B. No such party has pending actions, other than routine litigation incidental to the business, that is significant in the context of the number of franchisees and the size, nature, or financial condition of the franchise system or its business operations. C. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the ten years immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices or comparable allegations. D. No such party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a Federal, State, or Canadian franchise, securities, antitrust, trade regulation, or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency;
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, the New York addendum modifies the standard Franchise Disclosure Document and may supersede certain portions of the Franchise Agreement. However, this supersedence is conditional. It only applies to the extent required by valid and applicable state law. This means that if a specific clause in the Franchise Agreement conflicts with New York state law, the addendum takes precedence, but only to the degree necessary to comply with the law.
Specifically, the 1-800-GOT-JUNK? FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on franchisor statements. This provision overrides any conflicting terms in other documents related to the franchise. Additionally, New York law mandates that 1-800-GOT-JUNK? provide the Franchise Disclosure Document to prospective franchisees at the earliest of the first personal meeting, ten business days before signing any agreement, or when any consideration related to the franchise is paid.
This ensures that franchisees in New York receive certain protections and disclosures as required by state law. The acknowledgment included in the addendum confirms that the state law addendum supersedes any inconsistent parts of the Franchise Agreement or Franchise Disclosure Document. This acknowledgment is only valid to the extent that the state laws are applicable, enforceable, and remain in effect. This ensures franchisees are aware of their rights and that the franchise agreement adheres to New York law.