Under what conditions is a consent or waiver effective under the Better Blend franchise agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
**if applicable: AND MULTI-UNIT DEVELOPMENT AGREEMENT]
Agreement] dated This Rider amends the Franchise Agreement [if applicable: and Multi-Unit Development (the "Agreement"), between Better Blend Franchising, LLC, an Ohio limited liability company ("Franchisee"). ("BBF") and, a 1. Capitalized terms used but not defined in this Rider have the meanings given Definitions. in the Agreement. 2. Waivers Not Required. would relieve BBF Business Law, Article 33 (the "New York Franchise Law"). Notwithstanding any provision of the Agreement to the contrary, Franchisee is not required to assent to a release, assignment, novation, waiver or estoppel which or any other person from any duty or liability imposed by New York General 3. Waivers of New York Law Deleted.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, the effectiveness of consents and waivers is subject to certain limitations, particularly concerning state laws. For instance, a franchisee cannot consent to Better Blend obtaining injunctive relief. Additionally, a court will determine if a bond is required in such situations.
In New York, franchisees are not required to assent to a release, assignment, novation, waiver, or estoppel that would relieve Better Blend from any duty or liability imposed by the New York Franchise Law. Any provision in the franchise agreement that attempts to bind the franchisee to waive compliance with the New York Franchise Law is deleted. The New York Franchise Law governs any claim arising under that law, regardless of what the franchise agreement states.
Similarly, in Maryland, any representations requiring prospective franchisees to release, provide estoppel, or waive liability do not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. Any general release required as a condition of renewal does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. Claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise, and franchisees retain the right to file lawsuits in Maryland courts for causes of action arising under this law.
In North Dakota, franchisees are not required to consent to a limitation of claims, as the statute of limitations under North Dakota law applies. These state-specific riders to the franchise agreement highlight the importance of understanding how local laws can modify the standard terms of the franchise agreement, especially regarding waivers and consents.