What happens to Section 12.K of the Bft Multi-Unit Agreement regarding limitation of claims for Bft?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
knowledge that certain parts of this provision might not be enforceable under the North Dakota Franchise Investment Law. However, Franchisor and Franchisee agree to enforce the provision to the extent the law allows.
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- Waiver of Jury Trial. To the extent required by the North Dakota Franchise Investment Law, Section 12.H (Waiver of Jury Trial) of the Multi-Unit Agreement is deleted.
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- Waiver of Class Actions; Limitation of Actions. The following is added to the end of Sections 12.I (Waiver of Class Actions) and 12.K (Limitation of Actions) of the Multi-Unit Agreement:
The statutes of limitations under North Dakota Law applies with respect to claims arising under the North Dakota Franchise Investment Law.
[SIGNATURE PAGE TO FOLLOW]
IN WITNESS WHEREOF, the parties have executed and delivered this Rider to be effective as of the effective date of the Multi-Unit Agreement.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to the 2025 FDD, Section 12.K of the Bft Multi-Unit Agreement, which concerns the limitation of actions, is subject to state-specific modifications through riders. For franchisees in North Dakota, the statutes of limitations under North Dakota Law will apply to claims arising under the North Dakota Franchise Investment Law. This means that the standard limitation of actions clause in the Multi-Unit Agreement may be superseded by North Dakota law for claims related to franchise investment.
For franchisees in Minnesota, the rider adds a provision to Section 12.K specifying that no action may be commenced under Minn. Stat. Sec. 80C.17 more than 3 years after the cause of action accrues. This sets a specific statute of limitations for claims under Minnesota franchise law, overriding any conflicting terms in the original agreement.
For franchisees in Maryland, the rider adds a provision to Sections 12.H, 12.I, and 12.K, stating that any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise. This establishes a 3-year statute of limitations for claims related to Maryland franchise law, potentially differing from the standard terms in the Multi-Unit Agreement. Therefore, prospective franchisees should carefully review the specific rider applicable to their state to understand how the limitation of actions clause is modified.