What section of the 1 800 Packouts Franchise Agreement does Section 2 of the Rider amend?

According to the 2025 1 800 Packouts Franchise Disclosure Document, Section 2 of the Rider modifies specific sections of the standard Franchise Agreement. This modification pertains to franchisees operating in specific states, including Maryland, North Dakota, Minnesota, and New York.

Specifically, Section 2 of the Rider adds language to the end of Sections 2.D(4) and 14.C(6) of the Franchise Agreement. This addition relates to releases, and it stipulates that any general release signed as a condition to transfer or renewal will not apply to claims arising under specific state franchise laws, such as the Maryland Franchise Registration and Disclosure Law, the North Dakota Franchise Investment Law, and the Minnesota Franchises Law. In the case of New York, the addition ensures that all rights and causes of action arising from Article 33 of the General Business Law of the State of New York remain in force.

This amendment is significant for prospective franchisees as it clarifies the extent to which they waive their rights when signing releases related to franchise transfer or renewal. The Rider ensures that franchisees in these states retain their rights under state franchise laws, providing an additional layer of protection. This is particularly important because franchise laws vary significantly from state to state, and these Riders ensure compliance with local regulations and protect the franchisee's statutory rights.