Does the New York amendment for City Publications address injunctive orders?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
The following is added to the end of the "Summary" sections of Item 17(c), titled "Requirements for franchisee to renew or extend," and Item 17(m), entitled "Conditions for franchisor approval of transfer": However, to the extent required by applicable law, all rights you enjoy and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of this proviso that the non-waiver provisions of General Business Law Sections 687(4) and 687(5) be satisfied.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the New York amendment addresses injunctive orders in relation to franchisee rights. Specifically, it states that all rights and causes of action arising from Article 33 of the General Business Law of the State of New York remain in force, ensuring the non-waiver provisions of General Business Law Sections 687(4) and 687(5) are satisfied. This means that any rights a franchisee has under New York law, including those related to injunctive relief, cannot be waived by the franchise agreement.
This provision is important for prospective City Publications franchisees in New York because it protects their ability to seek legal remedies, such as injunctions, if City Publications violates the franchise agreement or engages in unfair practices. The amendment ensures that franchisees retain all rights granted to them under New York law, regardless of what the franchise agreement might otherwise stipulate. This protection is particularly relevant in the context of franchise relationships, where there can be a power imbalance between the franchisor and franchisee.
Furthermore, the FDD includes a general statement that no party is subject to an injunctive or restrictive order relating to the franchise under Federal, State, or Canadian franchise, securities, antitrust, trade regulation, or trade practice law resulting from a concluded or pending action brought by a public agency. This suggests that City Publications aims to ensure neither they nor their franchisees are encumbered by legal restrictions that could impede business operations. However, this is a general statement and not specific to the New York amendment.
In summary, while the New York amendment doesn't explicitly focus on injunctive orders, it reinforces the franchisee's rights under New York law, which could include the right to seek injunctive relief. The FDD also contains a general statement regarding injunctive orders, but prospective franchisees should consult with legal counsel to fully understand their rights and protections under New York law.