What sections of the Bft Franchise Agreement have additional information added to them regarding Waiver of Class Actions and Limitation of Actions?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
icable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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- Waiver of Jury Trial; Class Actions. The following is added to the end of Sections 12.H (Waiver of Jury Trial) and 12.I (Waiver of Class Actions) of the Multi-Unit Agreement:
Nothing contained in this section shall constitute a condition, stipulation, or provision purporting to bind any person to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the State of Illinois, to the extent applicable.
- Limitation of Actions. The following is added to the end of Section 12.K (Limitation of Actions) of the Multi-Unit Agreement:
However, nothing contained in this section shall constitute a condition, stipulation, or provision purporting to bind any person to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the State of Illinois, to the extent applicable.
- Illinois Franchise Disclosure Act. The following language is added to the end of the Multi-Unit Agreement:
Except for the U.S. Federal Arbitration Act and other federal laws in the U.S., the laws of the State of Illinois will govern this Agreement.
Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a multiunit agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a multi-unit agreement may provide for arbitration outside of Illinois.
located in the State of Illinois.
Section 41 of the Illinois Franchise Disclosure Act provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to the 2025 FDD, depending on the state where the Bft franchise is located, there may be additional information added to the sections regarding Waiver of Class Actions and Limitation of Actions. For franchisees in Illinois, the following is added to the end of Sections 12.I (Waiver of Class Actions) of the Multi-Unit Agreement and Section 12.K (Limitation of Actions) of the Multi-Unit Agreement: Nothing contained in this section shall constitute a condition, stipulation, or provision purporting to bind any person to waive compliance with any provision of the Illinois Franchise Disclosure Act or any other law of the State of Illinois, to the extent applicable. For franchisees in Maryland, the following is added to the end of Sections 16.9 (Waiver of Class Actions) and 16.12 (Limitation of Actions) of the Franchise Agreement: Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the grant of the franchise.
For franchisees in North Dakota, 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.
For franchisees in Minnesota, the following is added to the end 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.