Under what grounds can an Aplus franchisee in New York terminate the franchise agreement?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
However, to the extent required by applicable law, 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 this proviso that the non-waiver provisions of General Business Law Sections 687.4 and 687.5 be satisfied.
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- The following replaces the "Summary" section of Item 17(d), titled "Termination by franchisee": You may terminate the agreement on any grounds available by law.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, a franchisee in New York may terminate the franchise agreement on any grounds available by law. This is specified in Item 22, which includes state-specific addenda that modify the standard franchise agreement. For New York franchisees, the FDD states that the 'Summary' section of Item 17(d), titled "Termination by franchisee" is replaced with the statement that the franchisee may terminate the agreement on any grounds available by law.
This provision ensures that Aplus franchisees in New York retain all rights and causes of action afforded to them under Article 33 of the General Business Law of the State of New York. The FDD explicitly mentions that the non-waiver provisions of General Business Law Sections 687.4 and 687.5 are to be satisfied. This means that the standard terms of the Aplus franchise agreement cannot override or diminish the protections provided by New York state law.
In practical terms, this offers Aplus franchisees in New York a broader scope for terminating their agreements compared to franchisees in other states where the standard agreement terms might be more restrictive. It is important for prospective franchisees in New York to understand Article 33 of the General Business Law to fully grasp their termination rights. They should seek legal counsel to ensure they are well-informed of their rights under New York law, as these rights will supersede any conflicting terms in the standard Aplus franchise agreement.