Does the Better Blend franchise agreement limit litigation brought for breach of the agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- (10) Limiting litigation brought for breach of the agreement in any manner whatsoever.
**MARYLAND RIDER TO FRANCHISE AGREEMENT [**if applicable: AND MULTI-UNIT DEVELOPMENT AGREEMENT]
- All representations requiring prospective Releases, Estoppels and Waivers of Liability. franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. The general release required as a condition of renewal shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law. 3. under the Maryland Franchise Registration and Statute of Limitations. Any claims arising Disclosure Law must be brought within three years after the grant of the franchise. 4. Jurisdiction. Franchisee does not waive its right to file a lawsuit alleging a cause of action arising under the Maryland Franchise Registration and Disclosure Law in any court of competent jurisdiction in the State of Maryland.
The Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5, and therefore the applicable provision of the Agreement is amended to state "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues."
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the Maryland Rider to the franchise agreement specifies that all representations requiring prospective franchisees to assent to a release, estoppel, or waiver of liability do not act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. Additionally, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. The franchisee does not waive its right to file a lawsuit alleging a cause of action arising under the Maryland Franchise Registration and Disclosure Law in any court of competent jurisdiction in the State of Maryland.
Furthermore, the Minnesota Rider amends the franchise agreement to state that "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues."
However, the Maryland Rider and Minnesota Rider provisions do not apply to franchisees in other states. The franchise agreement states that it is impermissible to limit litigation brought for breach of the agreement in any manner whatsoever. Therefore, prospective franchisees should consult with a legal professional to fully understand their rights and obligations under the franchise agreement, specifically regarding dispute resolution and any limitations on legal claims.