What sections of the 1 800 Packouts Franchise Agreement are modified by the Releases provision in the Rider?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Releases. The following language is added to the end of Sections 2.D(4) and 14.C(6) of the Franchise Agreement:
- , provided, however, that to the extent required by Article 33 of the General Business Law of the State of New York, 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; it being the intent of the proviso that the non-waiver provisions of GBL 687 and 687.5 be satisfied.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, the Releases provision in the Rider modifies Sections 2.D(4) and 14.C(6) of the Franchise Agreement. These modifications are specified in state-specific riders, which are addenda to the standard franchise agreement that address particular legal requirements or considerations in those states. The content of the modification varies by state.
For franchisees in New York, the rider adds language ensuring that the franchisee's rights and causes of action under Article 33 of the General Business Law of New York are not waived. This protects the franchisee's rights under New York's franchise laws, as GBL 687 and 687.5 contain non-waiver provisions.
In Maryland, the rider specifies that any general release signed as a condition of transfer or renewal will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law. This ensures that franchisees retain their rights to pursue claims under Maryland franchise law even if they sign a general release.
For North Dakota, the rider states that any general release will not apply to the extent prohibited by law with respect to claims arising under the North Dakota Franchise Investment Law. This protects franchisees' rights under North Dakota's franchise laws by preventing waivers of rights where prohibited.
In Minnesota, the rider specifies that any release required as a condition of renewal and/or assignment/transfer will not apply to the extent prohibited by the Minnesota Franchises Law. This ensures that franchisees in Minnesota do not waive rights protected by Minnesota franchise law when renewing or transferring their franchise.