Does the New York amendment for City Publications address trade practice law?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
D.
No such party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a Federal, State, or Canadian franchise, securities, antitrust, trade regulation, or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as Rev.
April 18, 2023 2 defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or issubject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales agent.
The following is added to the end of the "Summary" sections of Item 17(c), titled "Requirements for a 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; this proviso intends that the nonwaiver 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 trade practice law. 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, along with its regulations, remain in force to the extent required by applicable law. This ensures that the non-waiver provisions of General Business Law Sections 687(4) and 687(5) are satisfied.
This means that City Publications franchisees in New York retain certain legal rights and protections under New York's General Business Law, particularly concerning franchise relationships. The amendment ensures that franchisees cannot unintentionally waive these rights through provisions in the franchise agreement. This is a beneficial provision for franchisees as it protects them from potentially overreaching terms in the agreement that might otherwise limit their legal recourse.
For a prospective City Publications franchisee in New York, this amendment offers an added layer of security. It confirms that the franchisee's rights under New York law are preserved, regardless of what the franchise agreement might state. This protection is particularly important in the context of franchise renewals or transfers, ensuring that franchisees are not pressured into relinquishing their legal rights to facilitate these transactions.