What does section 7 of the Beard Papas agreement pertain to?

According to the 2025 Beard Papas Franchise Disclosure Document, Section 7 of the Development Agreement pertains to "Enforcement and Construction". Specifically, in New York, Article 18 of the Franchise Agreement and Section 7 of the Development Agreement are supplemented by the addition of a new subarticle 18.Z to the Franchise Agreement and Section 7.24 to the Development Agreement. This addition ensures that nothing in the agreement should be considered a waiver of any right conferred upon the franchisee by New York General Business Law, Sections 680-695.

This amendment is crucial for prospective Beard Papas franchisees in New York as it reinforces their rights under the New York General Business Law, preventing any clause in the franchise agreement from being interpreted as a waiver of these rights. This protection covers a range of potential issues, including those related to franchise sales, transfers, and terminations, ensuring franchisees retain their legal recourse.

For franchisees, this means that even if certain terms in the agreement appear to limit their rights, the provisions of the New York General Business Law will still apply. This offers an additional layer of security and legal protection, which is particularly important in the context of franchise agreements that can sometimes be complex and favor the franchisor. This type of clause is not uncommon, as many states have franchise laws designed to protect franchisees, and franchisors often include addenda to comply with these state-specific regulations.