Is Itan permitted to require prospective agreement to a release that relieves a person from liability imposed by the New York Franchise Law?

According to Itan's 2025 Franchise Disclosure Document, Itan will not require franchisees to prospectively agree to a release, assignment, novation, waiver, or estoppel that would relieve any person from liability imposed by the New York Franchise Law. This amendment is made in recognition of the requirements of the General Business Laws of the State of New York, Article 33, §§680 through 695. Additionally, Itan will not include any condition, stipulation, or provision in the Franchise Agreement that requires franchisees to waive compliance with any provision of the New York Franchise Law.

Furthermore, any provision in the Franchise Agreement that limits the time period for asserting a legal claim against Itan under the New York Franchise Law is amended to provide a three-year statute of limitations for claims arising under the New York Franchise Law. This ensures that franchisees have a reasonable timeframe to pursue legal action if necessary.

These stipulations protect Itan franchisees by ensuring that they cannot be forced to waive their rights under New York Franchise Law and that they have an adequate period to bring claims. Prospective franchisees should confirm that the franchise agreement they receive reflects these amendments and should consult with an attorney to fully understand their rights under New York law.