What section replaces Section 16.12 regarding Limitation of Actions in the Bft Franchise Agreement?

According to the 2025 Bft Franchise Disclosure Document, Section 16.12 of the Franchise Agreement, which pertains to the Limitation of Actions, is entirely deleted and replaced with the phrase "intentionally deleted". This change indicates that the original clause regarding the time frame within which legal actions can be brought by either party under the agreement has been removed.

For a prospective Bft franchisee, this deletion means that the standard contractual limitation on the time to file a lawsuit may not apply. However, in its Rider to the Franchise Agreement for use in Minnesota, the FDD states that the following is added to the end of Section 16.12: "; 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." This means that Minnesota law dictates that any action must be commenced within 3 years after the cause of action accrues.

It is important for prospective franchisees to understand the implications of this change, as the applicable statute of limitations will be determined by state law. Franchisees should seek legal counsel to fully understand their rights and obligations regarding the time frame for bringing legal claims under the Bft Franchise Agreement, as this can vary significantly depending on the jurisdiction.