If Beyond Juicery Eatery assigns its Franchise Agreement, who assumes the obligations?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the General Business Laws of the State of New York, Article 33, §§ 680 through 695, the Franchise Agreement for BEYOND JUICERY + EATERY FRANCHISING, LLC is amended as follows:
- Sections 13.02 and 16.09 require you to sign a general release as a condition of renewal, transfer. Such release shall exclude claims arising under the General Business Laws.
- Under Section13.01, Franchisor shall not transfer and assign its rights and obligations under the Franchise Agreement unless the transferee will be able to perform Franchisor's obligations under the Franchise Agreement, in Franchisor's good faith judgment, so long as it remains subject to the General Business Laws of the State of New York.
- Section 17 is amended to provide that you will not be required to indemnify us for any liability imposed upon us as a result of your reliance upon or use of procedures or products that were required by us, if such procedures or products were utilized by you in the manner required by us.
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, specifically the addendum for New York franchisees, Beyond Juicery Eatery cannot transfer its rights and obligations under the Franchise Agreement unless the transferee can fulfill those obligations in Beyond Juicery Eatery's judgment, provided it remains subject to New York's General Business Laws. This clause is designed to protect franchisees in New York, ensuring that any new franchisor is capable of supporting the franchise system.
This provision is particularly relevant for prospective franchisees in New York, as it adds a layer of security. It ensures that if Beyond Juicery Eatery decides to transfer the franchise agreement to another party, that party must be capable of performing the franchisor's duties. This requirement aims to prevent the franchise from being taken over by an entity that lacks the resources or expertise to support the franchisees adequately.
The FDD also stipulates that any release signed as a condition of transfer excludes claims arising under the General Business Laws of New York. Furthermore, franchisees are not required to indemnify Beyond Juicery Eatery for liabilities resulting from reliance on procedures or products mandated by the franchisor, provided those procedures or products were used as required. These stipulations collectively offer additional protections to franchisees operating in New York, addressing specific legal considerations within the state.
It is important for potential franchisees in New York to carefully review this addendum and understand their rights and obligations under these specific provisions. Consulting with a legal professional experienced in franchise law is advisable to fully grasp the implications of these clauses and how they apply to their specific situation.