Does the New York amendment for City Publications address a violation of a securities law?
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 franchisee rights and causes of action arising from Article 33 of the General Business Law of the State of New York. Specifically, it ensures that 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 cannot be waived, protecting them from potentially unfair provisions in the franchise agreement.
While the New York amendment focuses on the non-waiver provisions related to the General Business Law, it does not explicitly mention or address violations of securities laws. The amendment is designed to ensure that franchisees retain their rights and legal recourse under New York's General Business Law, particularly concerning franchise agreements.
Prospective City Publications franchisees in New York should be aware that this amendment strengthens their position by preventing the waiver of rights granted by New York law. However, it is important to note that this protection is specific to the provisions of Article 33 of the General Business Law and does not extend to other areas such as securities law violations. Franchisees should consult with legal counsel to fully understand their rights and obligations under both the franchise agreement and applicable state and federal laws.