Is the choice of law for the All County franchise agreement subject to any limitations?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
lations 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.
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- The following language replaces the "Summary" section of Item 17(d), titled "Termination by a franchisee": "You may terminate the agreement on any grounds available by law."
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- 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.
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 31–34)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the choice of law in the franchise agreement is subject to certain limitations, particularly for franchisees in New York and Maryland. For New York franchisees, the FDD states that the 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. This ensures that the non-waiver provisions of General Business Law Sections 687(4) and 687(5) are satisfied, protecting the franchisee's rights under New York law.
For franchisees in Maryland, the FDD includes an addendum that provides additional protections. Specifically, a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, regardless of the choice of law provision in the franchise agreement. Furthermore, any general release required in the Franchise Agreement as a condition of renewal, sale, and/or assignment or transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This means that franchisees in Maryland retain their rights under Maryland franchise law, even if the franchise agreement specifies another state's law.
These limitations are important for prospective All County franchisees to understand, as they ensure that franchisees retain certain rights and protections under their respective state laws, despite any choice of law provision in the franchise agreement. Franchisees should consult with legal counsel to fully understand their rights and obligations under the franchise agreement and applicable state laws.