Non-Reliance Disclaimers and Anti-Waiver Provisions

A number of conflicting decisions over the past year and a half concerning whether provisions prohibiting waiver of duties or liabilities under the New York Franchise Act prohibit franchisors from interposing franchisee "non-reliance" franchise agreement disclaimers when confronting fraud actions brought under the Act makes clear that this critical area of law will remain muddied until the courts decisively rule on the subject.

15 minute read April 01, 2016 at 12:00 AM
By
David J. Kaufmann
Non-Reliance Disclaimers and Anti-Waiver Provisions

A number of conflicting decisions over the past year and a half concerning whether provisions prohibiting waiver of duties or liabilities under the New York Franchise Act prohibit franchisors from interposing franchisee “non-reliance” franchise agreement disclaimers when confronting fraud actions brought under the Act makes clear that this critical area of law will remain muddied until New York's appellate courts, and conceivably the Court of Appeals, decisively rule on the subject.

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