What New York law is Bang Cookies recognizing in the amendments to the Franchise Agreement?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
or waiver or any liability under the Minnesota Franchise Act.
- Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Minnesota Franchise Act are met independently without reference to this amendment.
IN WITNESS WHEREOF, the parties have duly executed and delivered this Minnesota State amendment to the Bang Cookies Franchise LLC Franchise Agreement and, if applicable, the Development Agreement on the same date as the Franchise Agreement and Development Agreement were, respectively, executed.
| Signature | Signature | |----------------------------------------------------------|---------------------| | Name and Title (please print) | Name (please print) | | Dated | Dated Signature Name (please print) Dated |
NEW YORK FRANCHISE AND DEVELOPMENT AGREEMENT AMENDMENT
Amendments to the Bang Cookies Franchise Agreement
In recognition of the requirements of the New York General Business Law, Article 33, Sections 680 through 695, and of the regulations promulgated thereunder (N.Y. Comp. Code R. & Regs., tit. 13, §§ 200.1 through 201.16), the parties to the attached Bang Cookies Franchise LLC Franchise Agreement (the "Franchise Agreement") and, if Franchisor and Franchisee both sign the Bang Cookies Franchise LLC Multi-Unit Development Agreement (the "Development Agreement"), as follows:
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- Under Article 14.C of the Franchise Agreement, under the heading "Conditions for Approval of Transfer," the subarticle 14.C(6) is supplemented with the addition of the following language:
- ; provided, however, that all rights and causes of action arising in favor of Franchisee from the provisions of New York General Business Law Sections 680-695 and the regulations issued thereunder, shall remain in force; it being the intent of this provision that the non-waiver provisions of N.Y. Gen. Bus. Law Sections 687.4 and 687.5 be satisfied.
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- Under Article 15.B of the Franchise Agreement, under the heading "Conditions for Renewal," the subarticle 15.B(8) is supplemented with the addition of the following language:
- ; provided, however, that all rights and causes of action arising in favor of Franchisee from the provisions of New York General Business Law Sections 680-695 and the regulations issued thereunder, shall remain in force; it being the intent of this provision that the non-waiver provisions of N.Y. Gen. Bus. Law Sections 687.4 and 687.5 be satisfied.
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- Article 18 of the Franchise Agreement and, if Franchisee executes a Development Agreement, Article 7 of the Development Agreement, under the heading "Enforcement and Construction," shall be supplemented by the addition of the following new subarticle 18.Z. to the Franchise Agreement and Article 7.24 of the Development Agreement:
Nothing in this Agreement should be considered a waiver of any right conferred upon franchisee by New York General Business Law, Sections 680-695.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the amendments to the franchise agreement recognize the requirements of the New York General Business Law, Article 33, Sections 680 through 695, and the regulations promulgated thereunder (N.Y. Comp. Code R. & Regs., tit. 13, §§ 200.1 through 201.16). This law covers franchise sales and is designed to protect franchisees in New York.
The amendments ensure that certain rights and causes of action arising in favor of the franchisee under these sections of New York law remain in force, specifically addressing the non-waiver provisions of N.Y. Gen. Bus. Law Sections 687.4 and 687.5. This means that franchisees cannot be forced to waive their rights under New York franchise law, even through provisions in the franchise agreement. These stipulations apply to the conditions for approval of transfer and conditions for renewal of the franchise agreement.
Bang Cookies also clarifies that the choice of law in the agreement 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. Furthermore, Bang Cookies is required to furnish a New York prospectus to every prospective franchisee who is protected under the New York General Business Law, Article 33. The amendments are effective only to the extent that the jurisdictional requirements of the New York General Business Law are met.
For a prospective Bang Cookies franchisee in New York, this means that the franchise agreement is specifically tailored to comply with New York franchise law, providing additional protections and ensuring that franchisees' rights are not inadvertently waived. It also means that the franchisee has the right to bring a lawsuit in New York for claims arising under the New York General Business Law.