Can a Crab N Spice franchisee disclaim reliance on behalf of the franchisor?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
B N SPICE GROUP
NEW YORK RIDER TO FRANCHISE AGREEMENT
This Rider amends the Agreement dated (the , a ("Franchisee"). "Agreement"), between Crab N Spice Group, a California corporation ("CNS Franchising") and 1. Definitions. in the Agreement. Capitalized terms used but not defined in this Rider have the meanings given 2. Waivers Not Required. would relieve CNS Franchising York General Business Law, Article 33. Notwithstanding any provision of the Agreement to the contrary, Franchisee is not required to assent to a release, assignment, novation, waiver or estoppel which or any other person from any duty or liability imposed by New 3. deleted. Waivers of New York Law Deleted. Any condition, stipulation, or provision in the Agreement purporting to bind Franchisee to waive compliance by CNS Franchising with any provision of New York General Business Law, or any rule promulgated thereunder, is hereby 4.
Source: Item 22 — CONTRACTS (FDD pages 50–51)
What This Means (2024 FDD)
According to the 2024 Crab N Spice Franchise Disclosure Document, a franchisee in New York is not required to sign a release, assignment, novation, waiver, or estoppel that would relieve CNS Franchising or any other person from any duty or liability imposed by New York General Business Law, Article 33. Additionally, any condition, stipulation, or provision in the Agreement purporting to bind Franchisee to waive compliance by CNS Franchising with any provision of New York General Business Law, or any rule promulgated thereunder, is deleted. This ensures that franchisees in New York retain their rights and protections under New York law, regardless of what the standard franchise agreement might otherwise stipulate.
Similarly, in North Dakota, Crab N Spice franchisees are not required to consent to a limitation of claims, and the statute of limitations under North Dakota law applies. This means that the standard franchise agreement cannot override the legal protections afforded to franchisees by North Dakota state law regarding the time frame within which they can bring a claim.
In Rhode Island, any provision of the Crab N Spice agreement restricting jurisdiction or venue to a forum outside the State of Rhode Island or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under Rhode Island Franchise Investment Act. This ensures that Rhode Island franchisees have the right to pursue claims within their own state and under their own state's laws, preventing the franchisor from imposing out-of-state legal requirements that could disadvantage the franchisee. These state-specific riders modify the standard franchise agreement to protect franchisees' rights under local laws.