1. The Laws of New York
  2. Consolidated Laws
  3. General Business
  4. Article 26: Miscellaneous


Section 394-D Privity of contract between franchise seller and customer or patron of dealer

General Business (GBS)

Privity of contract between franchise seller and customer or patron of dealer. a. Any contract for instruction in physical and social skills, or for the use by an individual patron of a dance hall studio, ballroom, gymnasium, or other physical or social training facility which requires payment by the person receiving such instruction, or the use of such physical or social training facilities, between such patron and a franchised dealer shall be enforceable by the patron against the franchise seller either in requiring specific performance of the contract or in holding said franchise seller responsible for damages for a breach thereof.

  b. For the purposes of this section, a "franchise seller" is an individual, partnership or corporation which sells to a dealer the right to use a certain name, reputation, process or course of instruction owned by it and which the dealer will make available to individual buyer or patron for a consideration or fee.

  c. For the purposes of this section a "dealer" is an individual, partnership or corporation which contracts with a franchise seller to obtain and use the product of the franchise seller for the purpose of using, selling or making it available to an individual buyer or patron for a consideration or fee.

  d. For the purposes of this section a "customer", "individual" or "patron" is a person who agrees to and contracts for a course of instruction in physical and social skills, or for the use of a dance hall studio, ballroom, gymnasium or other physical or social training facility.