In New York, on what grounds can a franchisee terminate their Southern Steer franchise agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
fied.
- The following language replaces the "Summary" section of Item 17(d), titled "Termination by franchisee":
You may terminate the agreement on any grounds available by law.
- The following is added to the end of the "Summary" sections of Item17(v), titled "Choice of forum" and Item 17(w), titled "Choice of law":
The foregoing choice of law should not be considered a waiver of any right conferred upon the franchisor or upon the franchisee by Article 33 of the General Business Law of the State of New York.
| Franchisor"
Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, a franchisee in New York may terminate the franchise agreement on any grounds available by law. This statement replaces the original summary section regarding termination by the franchisee.
Additionally, the FDD states that the choice of law should not be considered a waiver of any right conferred upon the franchisor or the franchisee by Article 33 of the General Business Law of the State of New York. This ensures that franchisees retain all rights granted to them under New York law, regardless of the franchise agreement's general choice of law provisions.
In practical terms, this means that prospective Southern Steer franchisees in New York should carefully review Article 33 of the General Business Law to understand their specific rights and protections regarding franchise termination. They should also consult with an attorney to ensure they fully understand their rights under both the franchise agreement and New York law.