New York’s judiciary has only infrequently been called upon to rule whether franchisee disclaimers of franchisor misconduct—either set forth within the subject franchise agreement itself or in a separate document subscribed contemporaneously therewith—are somehow violative of the New York Franchise Act’s “anti-waiver” provisions (at §687[5] thereof).
A ruling addressing the issue propounded two years ago by the Appellate Division was somewhat confusing. The decision held that a franchisor’s use of such franchisee disclaimers was not violative of the New York Franchise Act’s anti-waiver provisions—yet nevertheless proceeded to hold that the subject franchisor could not use that franchisee’s disclaimers to defend itself when the franchisee commenced an action against the franchisor asserting statutory fraud under the act.
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