Can Itan include a condition in the Franchise Agreement that requires a franchisee to waive compliance with any provision of the New York Franchise Law?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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- We will not require that you prospectively assent to a release, assignment, novation, waiver, or estoppel that purports to relieve any person from liability imposed by the New York Franchise Law.
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- We will not place any condition, stipulation, or provision in the Franchise Agreement that requires you to waive compliance with any provision of the New York Franchise Law.
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- Any provision in the Franchise Agreement that limits the time period in which you may assert a legal claim against us under the New York Franchise Law is amended to provide for a three (3) year statute of limitations for purposes of bringing a claim arising under the New York Franchise Law.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan will not include conditions in its Franchise Agreement that require franchisees to waive compliance with any provision of the New York Franchise Law. This commitment is made in recognition of the requirements of the General Business Laws of the State of New York, Article 33, §§680 through 695. This amendment applies to the Disclosure Document, Franchise Agreement, and Supplemental Agreements.
This means that Itan franchisees in New York are protected by the New York Franchise Law, and Itan cannot contractually obligate them to relinquish those protections. This assurance helps to create a more equitable relationship between Itan and its New York franchisees, ensuring that franchisees retain their legal rights under state law.
Additionally, Itan will not require franchisees to prospectively assent to a release, assignment, novation, waiver, or estoppel that purports to relieve any person from liability imposed by the New York Franchise Law. Any provision in the Franchise Agreement that limits the time period in which a franchisee may assert a legal claim against Itan under the New York Franchise Law is amended to provide for a three-year statute of limitations for bringing such claims.