Does the consent to jurisdiction section of the Bft Multi-Unit Agreement waive any rights conferred upon the developer by Article 33 of the New York General Business Law?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
- Governing Law; Consent to Jurisdiction. The following sentence is added to the end of Sections 12.A (Governing Law) and 12.F (Consent to Jurisdiction):
This section shall not be considered a waiver of any right conferred upon Developer by the provisions of Article 33 of the New York General Business Law, as amended, and the regulations issued thereunder.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the consent to jurisdiction section within the Multi-Unit Agreement does not constitute a waiver of any rights granted to the developer under Article 33 of the New York General Business Law. This protection extends to any amendments and regulations associated with the law. This provision is specifically added to the end of Sections 12.A, which covers Governing Law, and 12.F, which addresses Consent to Jurisdiction, within the Multi-Unit Agreement.
This clause ensures that Bft developers operating in New York retain all rights and protections afforded to them under New York's franchise laws, specifically Article 33 of the General Business Law. This is significant because Article 33 provides various protections to franchisees, including rights related to termination, non-renewal, and transfer of the franchise. By explicitly stating that the consent to jurisdiction does not waive these rights, Bft assures developers that they can still pursue legal remedies and protections available under New York law, even if disputes are resolved in a different jurisdiction.
For a prospective Bft multi-unit developer in New York, this provision offers a degree of security and assurance. It means that the developer's rights under New York franchise law are preserved, regardless of the governing law or jurisdiction specified in the franchise agreement. This can be particularly important in the event of a dispute with Bft, as the developer can rely on the protections of Article 33 without fear of those rights being waived by the consent to jurisdiction clause. This also aligns with franchise law's general intent to protect franchisees from potentially overreaching franchisor actions.
It is important for prospective Bft developers to fully understand their rights under Article 33 of the New York General Business Law and to consult with legal counsel to ensure that their interests are protected. While this clause prevents an explicit waiver, developers should still be diligent in understanding all aspects of the franchise agreement and how New York law applies to their specific situation.