How is Section 24, "Miscellaneous," of the Jack In The Box agreement supplemented?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
FERENT RULES, LLC is required to furnish a New York prospectus to every prospective developer who is protected under the New York General Business Law, Article 33.
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- To the extent this Amendment is deemed to be inconsistent with any terms or conditions of the Agreement, the terms of this Amendment shall govern.
DIFFERENT RULES, LLC DEVELOPER
NEW YORK DEVELOPMENT AGREEMENT AMENDMENT (MULTI-UNIT)
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 JACK IN THE BOX DEVELOPMENT AGREEMENT (the " Agreement") agree as follows:
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- Section 11.D of the Agreement, "Non-assignability," is supplemented by the following:
- Article 33, Section 687.5, of the New York General Business Law states that it is unlawful to require a franchisee to assent to a release, assignment, novation, waiver or estoppel which would relieve a person from any duty or liability imposed by this article.
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- Section 24 of the Agreement, under the heading "Miscellaneous," is supplemented by adding the following language:
Nothing in this Agreement should be considered a waiver of any right conferred upon Franchisee by New York General Business Law, Sections 680-695.
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- There are circumstances in which an offering made by DIFFERENT RULES, LLC would not fall within the scope of the New York General Business Law, Article 33, such as when the offer and acceptance occurred outside the state of New York. However, an offer or sale is deemed made in New York if Developer is domiciled in or the franchise will be opening in New York. DIFFERENT RULES, LLC is required to furnish a New York prospectus to every prospective developer who is protected under the New York General Business Law, Article 33.
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- To the extent this Amendment is deemed to be inconsistent with any terms or conditions of the Agreement, the terms of this Amendment shall govern.
DIFFERENT RULES, LLC DEVELOPER
NORTH DAKOTA DISCLOSURE ADDENDUM
In recognition of the requirements of the North Dakota Franchise Investment Law, N.D. Cent.
Source: Item 22 — CONTRACTS (FDD page 94)
What This Means (2025 FDD)
According to the 2025 Jack In The Box Franchise Disclosure Document, Section 24, "Miscellaneous," of the Jack In The Box agreement is supplemented differently based on the state where the franchise is located. In New York, for example, for both single and multi-unit development agreements, Section 24 is supplemented to include that nothing in the agreement should be considered a waiver of any right conferred upon the franchisee by New York General Business Law, Sections 680-695. This addition ensures that franchisees in New York retain all rights granted to them under New York law, regardless of what the standard Jack In The Box agreement might otherwise imply.
In Rhode Island, Section 24 of the Jack In The Box Development Agreement is supplemented to include that § 19-28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act." This means that any clause in the franchise agreement that forces legal disputes to be resolved outside of Rhode Island or under the laws of another state is not enforceable for claims under the Rhode Island Franchise Investment Act.
In Maryland, a new Section 24.F is added under the heading "Miscellaneous" to the Jack In The Box Development Agreement. This new section states that the Maryland Franchise Registration and Disclosure Law allows a franchisee to bring a civil lawsuit in Maryland for claims arising under this Law, and any such claims must be brought within three years after the grant of the franchise. This addition clarifies the franchisee's right to sue in Maryland under Maryland franchise law and sets a specific time limit for bringing such claims. These state-specific amendments are crucial for franchisees to understand their rights and obligations under the Jack In The Box franchise agreement within the context of their state's laws.