Under what conditions is it unlawful for Cordova to repurchase a franchisee's business?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the New York General Business Law, Article 33, Sections 680 through 695, and of the regulations promulgated thereunder (N.Y. Comp. Code R. & Regs., tit. 13, §§ 200.1 through 201.16), the parties to the attached Cordova Franchising, LLC Franchise Agreement (the "Franchise Agreement"):
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- Under Article 14.C. of the Franchise Agreement, under the heading "Conditions for Approval of Transfer," the subarticle 14.C.(6) is supplemented with the addition of the following language:
- ; provided, however, that all rights and causes of action arising in favor of Franchisee from the provisions of New York General Business Law Sections 680-695 and the regulations issued thereunder, shall remain in force; it being the intent of this provision that the non-waiver provisions of N.Y. Gen. Bus. Law Sections 687.4 and 687.5 be satisfied.
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- Under Article 15.B. of the Franchise Agreement, under the heading "Conditions for Renewal," the subarticle 15.B.(8) is supplemented with the addition of the following language:
- ; provided, however, that all rights and causes of action arising in favor of Franchisee from the provisions of New York General Business Law Sections 680-695 and the regulations issued thereunder, shall remain in force; it being the intent of this provision that the non-waiver provisions of N.Y. Gen. Bus. Law Sections 687.4 and 687.5 be satisfied.
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- Article 18 of the Franchise Agreement and, under the heading "Enforcement and Construction," shall be supplemented by the addition of the following new subarticle 18.Z. to the Franchise Agreement:
Nothing in this Agreement should be considered a waiver of any right conferred upon franchisee by New York General Business Law, Sections 680-695.
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
Based on the 2025 Cordova Franchise Disclosure Document, the franchise agreement includes amendments specific to New York, acknowledging the New York General Business Law, Article 33, Sections 680 through 695. These amendments ensure that franchisees retain all rights and causes of action arising from these New York laws and regulations. This specifically addresses the non-waiver provisions of N.Y. Gen. Bus. Law Sections 687.4 and 687.5. These stipulations apply to conditions for transfer and renewal of the franchise agreement.
Specifically, the Cordova franchise agreement states that nothing within the agreement should be interpreted as a waiver of any right conferred upon the franchisee by New York General Business Law, Sections 680-695. This means that any rights a franchisee has under New York law cannot be surrendered or nullified by the franchise agreement itself.
In practical terms, this protects Cordova franchisees in New York by ensuring they can't be forced to give up their legal rights under state law as a condition of the franchise agreement. It is important for prospective franchisees in New York to understand these protections and consult with legal counsel to fully understand their rights under New York General Business Law Sections 680-695.