How can the Corporate Cleaning Group agreement be modified?
Corporate_Cleaning_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
| THIS RIDER TO THE FRANCHISE AGREEMENT FOR NEW YORK ("Rider") is entered into by and between Corporate Cleaning Group Franchise Systems LLC, a[n] Michigan limited liability company, with its principal office at 39201 Schoolcraft Road Suite B12 Livonia, Michigan 48150 ("we," "us" or "our") and | ||
|---|---|---|
| ("you" or "your"), whose principal business address is | ||
| WHEREAS, | ||
| we | ||
| and | ||
| you | ||
| have | ||
| entered | ||
| into | ||
| a certain | ||
| Franchise | ||
| Agreement | ||
| dated | ||
| which grants you the right to operate a Corporate Cleaning Group franchise | ||
| (the | ||
| "Franchise Agreement"); | ||
| WHEREAS, you | ||
| are | ||
| domiciled | ||
| in | ||
| New | ||
| York | ||
| and | ||
| the Corporate Cleaning Group | ||
| franchise | ||
| will | ||
| be | ||
| located | ||
| in | ||
| New York, | ||
| and/or | ||
| any | ||
| of the | ||
| offering | ||
| or sales | ||
| activity | ||
| relating | ||
| to the | ||
| Franchise | ||
| Agreement | ||
| occurred | ||
| in the | ||
| State of New | ||
| York; and | ||
| WHEREAS, in recognition of the requirements of the General Business Law of the State of New | ||
| York, Article 33, Sections 680-695, we and you desire | ||
| to amend certain | ||
| terms | ||
| of | ||
| the | ||
| Franchise | ||
| Agreement | ||
| in | ||
| accordance | ||
| with | ||
| the | ||
| terms | ||
| and | ||
| conditions | ||
| contained | ||
| in | ||
| this Rider. | ||
| NOW | ||
| THEREFORE, in consideration of the mutual covenants and agreements contained in the | ||
| Franchise Agreement and this Rider and for other good and valuable consideration, the receipt and | ||
| sufficiency of which are hereby acknowledged, we and you agree as follows: | ||
| 1. Sections 5.2.5 and 16.3.6 of the Franchise Agreement are amended by adding the following | ||
| language to each Section: | ||
| However, to the extent required by applicable law, notwithstanding the | ||
| signing of a General Release, 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. | ||
| 2. Section 16.1.1 of the Franchise Agreement is amended by adding the following language to this | ||
| Section: | ||
| However, to the extent required by applicable law, Franchisor will not | ||
| transfer and assign its rights and obligations under the Franchise | ||
| Agreement unless the transferee will be able to perform the Franchisor's | ||
| obligations under the Franchise Agreement, in Franchisor's good faith | ||
| judgment. |
[Item 22: CONTRACTS]
AMENDMENT TO THE
CORPORATE CLEANING GROUP FRANCHISE SYSTEMS LLC FRANCHISE AGREEMENT REQUIRED BY THE STATE OF MINNESOTA
In recognition of the requirements of the Minnesota Statutes Chapter 80C, the parties to the attached Corporate Cleaning Group Franchise Agreement (the "Franchise Agreement") agree as follows:
Minnesota Rules 2860.4400(D) prohibits a franchisor from requiring a franchisee's assent to a release other than as part of a voluntary settlement of disputes.
To the extent of any inconsistencies with the Minnesota Rules requirement contained in Sections 5.2.5 or 16.3.6 of the Franchise Agreement, such inconsistent provisions are hereby deleted.
To the extent of any inconsistencies, Section 5.1.1 of the Franchise Agreement is hereby amended to state:
- "Except in certain specified cases as set forth in Minn.
Stat. § 80C.14 subd. 4, Franchisor will give Franchisee 180 days' notice for non-renewal of the Franchise Agreement."
To the extent of any inconsistencies, Section 6.4 of the Franchise Agreement is hereby amended to state that the non-sufficient funds fee is Thirty Dollars ($30.00) per occurrence.
To the extent of any inconsistencies, Sections 17.1 through 17.3 of the Franchise Agreement are hereby amended to state:
- "Except in certain specified cases as set forth in Minn.
Stat. § 80C.14 subd. 3, Franchisor will give Franchisee 90 days notice of termination (with 60 days to cure)".
To the extent of any inconsistencies, Article 20, Dispute Resolution, of the Franchise Agreement is hereby amended to state:
- "Franchisor cannot require Franchisee to: (i) conduct litigation outside Minnesota, (ii) waive a jury trial, or (iii) consent to liquidated damages, termination penalties or judgment notes.
Nothing in this Franchise Agreement shall abrogate or reduce (1) any of Franchisee's rights as provided for in Minn.
Stat.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2025 FDD)
According to the 2025 Corporate Cleaning Group Franchise Disclosure Document, the franchise agreement can be modified through riders or amendments, particularly to comply with state laws. For instance, a rider to the franchise agreement is used for franchisees in New York to align with the state's General Business Law, modifying sections 5.2.5, 16.3.6, and 16.1.1 of the agreement. These modifications ensure that franchisees retain certain rights and causes of action as required by New York law, even with a general release, and that the franchisor's obligations can be performed by a transferee.
Similarly, the Corporate Cleaning Group franchise agreement includes an amendment to comply with Minnesota Statutes Chapter 80C. This amendment addresses inconsistencies related to franchisee releases, non-renewal notices, non-sufficient funds fees, termination notices, and dispute resolution. Specifically, it modifies sections 5.2.5, 16.3.6, 5.1.1, 6.4, and 17.1 through 17.3 of the franchise agreement to align with Minnesota law, including stipulations around releases, notice periods for non-renewal and termination, NSF fees ($30.00), and dispute resolution terms.
These amendments and riders highlight Corporate Cleaning Group's willingness to adapt the standard franchise agreement to meet specific state regulatory requirements. This is a fairly common practice in franchising, as franchise laws vary significantly from state to state. Prospective franchisees should carefully review any state-specific amendments to understand their rights and obligations within their particular jurisdiction. It also indicates that the standard franchise agreement may not be universally applicable and is subject to change based on location.