Does the All States M.E.D. franchise agreement prohibit franchisees from joining their claims with other franchisees?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
- d) Class Action Waiver. You agree to bring any Claims, if at all, individually and you shall not join such claim with claims of any other person or entity or bring, join or participate in a class action against us.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to the 2024 All States M.E.D. Franchise Disclosure Document, the franchise agreement includes a class action waiver. Specifically, franchisees agree to bring any claims individually and are prohibited from joining their claims with those of other individuals or entities. They also cannot participate in a class action against All States M.E.D. Franchising, LLC.
This means that an All States M.E.D. franchisee is giving up the right to participate in a class action lawsuit against the company. This type of clause is included to prevent the franchisor from facing large, consolidated lawsuits involving many franchisees, which can be costly and time-consuming to defend.
However, the Minnesota Addendum to the Franchise Agreement states that Minnesota Statutes prohibit the franchisor from requiring a waiver of a jury trial. It also specifies that nothing in the Franchise Disclosure Document or agreements can reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. Therefore, the class action waiver may not be enforceable in Minnesota. Prospective franchisees should consult with a legal professional to understand the implications of this clause in their specific state.