In New York, what law governs the termination rights of a City Wide franchisee?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.7 Applicable Law.
To the extent that the provisions of this Agreement provide for periods of notice less than those required by applicable law, or provide for termination, cancellation, non-renewal or the like other than in accordance with applicable law, to the extent such provisions are not in accordance with applicable law, they will not be effective, and CITY WIDE will comply with applicable law in connection with each of these matters.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
Based on the 2025 City Wide Franchise Disclosure Document, the franchise agreement includes a clause addressing applicable law in relation to termination. Specifically, if any provision within the agreement provides for shorter notice periods than mandated by law or allows for termination, cancellation, or non-renewal in a manner inconsistent with applicable law, those provisions will not be enforced. Instead, City Wide is obligated to adhere to all relevant legal requirements concerning such matters.
This means that while the City Wide franchise agreement outlines various conditions and procedures for termination, these are superseded by any conflicting state or federal laws. For a New York franchisee, this provides an added layer of protection, ensuring that City Wide must comply with New York's specific franchise laws regarding termination rights, notice periods, and related procedures.
Prospective franchisees in New York should be aware that the franchise agreement's termination clauses are subject to the overriding authority of New York state law. It would be prudent for a potential franchisee to consult with a legal professional familiar with New York franchise law to fully understand their rights and obligations regarding termination, cancellation, and renewal, irrespective of the terms outlined in the City Wide franchise agreement.