For Anago franchises, what happens to the 'Summary' section of Item 17(w) concerning 'Choice of law'?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The following is added to the end of the "Summary" sections of Item 17(v), titled "Choice offorum", 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 upon the franchisee by Article 33 of the General Business Law of the State of New York
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, for franchisees in New York, the 'Summary' section of Item 17(w), which addresses 'Choice of Law,' has specific stipulations. The standard choice of law clause in the franchise agreement is modified to ensure that it does not override any rights granted to the franchisee or the franchisor under Article 33 of the General Business Law of the State of New York. This means that while the agreement may specify a particular state's laws to govern the contract, the protections and rights provided by New York's franchise laws remain in effect.
This modification is important for prospective Anago franchisees in New York because it ensures that they retain the full benefits and protections afforded to them under New York law, regardless of what the standard franchise agreement might state. Article 33 of the General Business Law in New York covers various aspects of the franchise relationship, including termination, renewal, and transfer rights. By explicitly stating that the choice of law does not waive these rights, Anago is ensuring compliance with New York's franchise regulations.
For a potential franchisee, this means that even if the franchise agreement is governed by the laws of a different state (likely Florida, where Anago is based), New York law will still apply to certain key aspects of the franchise relationship. This provides an added layer of protection and recourse for franchisees operating in New York. It is a fairly common practice for franchise agreements to be governed by the laws of the franchisor's home state, but this clause ensures that franchisees in New York are not disadvantaged by that provision.
It is crucial for prospective franchisees in New York to understand the interplay between the standard choice of law provision and this specific modification. Consulting with a franchise attorney is advisable to fully grasp the implications and ensure that their rights are protected under both the franchise agreement and New York law.