Under what grounds can a Boulder Designs franchisee in New York terminate the agreement?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The following language replaces the "Summary" section of Item 17(d), titled "Termination by franchisee": You may terminate the agreement on any grounds available by law.
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- The following is added to the end of the "Summary" sections of Item 17(v), titled "Choice of forum", and Item 17(w), titled "Choice of law":
The foregoing choice of law should not be considered a waiver of any right conferred upon the franchisor or upon the franchisee by Article 33 of the General Business Law of the State of New York.
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- Franchise Questionnaires and Acknowledgements--No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–44)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, a franchisee in New York may terminate the franchise agreement on any grounds available by law. This means that the franchisee's ability to terminate the agreement is not restricted by the franchise agreement itself, but rather is governed by the laws of New York State. This provides a potentially broader range of termination options for franchisees in New York compared to franchisees in other states where the franchise agreement might impose stricter limitations on termination.
This provision is further reinforced by stipulations that the choice of law should not waive any rights conferred upon the franchisee by Article 33 of the General Business Law of the State of New York. Additionally, any statement or acknowledgement signed by the franchisee cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Boulder Designs. This ensures that franchisees retain their legal rights and protections under New York law, regardless of any provisions in the franchise agreement.
Prospective Boulder Designs franchisees in New York should consult with a legal professional to fully understand their rights and obligations regarding termination under New York law. This includes understanding what constitutes legal grounds for termination and the potential consequences of terminating the agreement. This is especially important given that the franchise agreement itself may not fully detail these grounds, instead relying on the broader legal framework of the state.