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What section is added to at the end of Section 16.12 (Limitation of Actions) of the Bft Franchise Agreement?

Q: What section is added to at the end of Section 16.12 (Limitation of Actions) of the Bft Franchise Agreement?

- 11. **Limitation of Actions**. The following is added to the end of Section 16.12 (**Limitation of Actions**) of the Franchise Agreement: ; provided, however, that Minnesota law provides that no action may be commenced under Minn. Stat. Sec. 80C.17 more than 3 years after the cause of action accrues. Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

1. Limitation of Actions. The following is added to the end of Section 16.12 (Limitation of Actions) of the Franchise Agreement:

; provided, however, that Minnesota law provides that no action may be commenced under Minn. Stat. Sec. 80C.17 more than 3 years after the cause of action accrues.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)

What This Means (2025 FDD)

According to the 2025 Bft Franchise Disclosure Document, a specific provision is added to the end of Section 16.12, which addresses the Limitation of Actions, within the Franchise Agreement. This addition pertains specifically to Minnesota law, stating that no action can be initiated under Minn. Stat. Sec. 80C.17 more than three years after the cause of action accrues. This means that in Minnesota, a franchisee has a limited time frame of three years to bring a legal claim after the event that gives rise to the claim occurs.

This limitation is significant for prospective Bft franchisees in Minnesota because it sets a clear deadline for filing lawsuits related to franchise matters. If a franchisee waits longer than three years after discovering a potential legal issue, they may lose their right to sue Bft. This timeframe is designed to ensure that legal disputes are addressed promptly while evidence and memories are still fresh.

It is important for franchisees to be aware of this statute of limitations and to seek legal advice promptly if they believe they have a claim against Bft. Franchisees should maintain thorough records of all communications, transactions, and events related to their franchise, as these records may be crucial in establishing the timeline for any potential legal action. This clause modifies the standard limitation of actions to comply with Minnesota state law, which is a common practice in franchising to ensure agreements align with local regulations.

However, for franchisees operating in Washington, Section 16.12 of the Franchise Agreement is deleted in its entirety and replaced with "intentionally deleted". This means that the standard limitation of actions clause is removed, and the statute of limitations for claims in Washington will be governed by Washington law, which may differ from the standard terms in the Franchise Agreement. Franchisees in Washington should consult with legal counsel to understand the applicable statute of limitations in their jurisdiction.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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