Until two years ago, it was beyond dispute that the three-year statute of limitations afforded by Section 691(4) of the New York Franchise Act for private actions brought thereunder commenced upon execution of the subject franchise agreement.
However, in Vysovsky v. Glasman,1 the court rendered what to the author’s knowledge was the first and only decision of its kind nationwide and unsupported by any judicial precedent, administrative interpretation or legislative history: that the New York Franchise Act’s statute of limitations for private litigants was triggered each time a franchisee was required to pay a segment of a franchise fee to the subject franchisor (in Vysovsky, the franchisees were “black car” franchised limousine drivers who had monthly fee deductions taken from their paychecks). It should be recalled that in Vysovsky the subject franchise agreements were executed between 1987 and 1989 but the franchisees’ action was initiated in March, 2001.
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