What sections of the Multi-Unit Agreement are related to waiver of punitive damages and jury trial for a Bft franchise?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
nchisor and Developer mutually agree.
- Consent to Jurisdiction. The following is added to the end of Section 12.F (Consent to Jurisdiction) of the Multi-Unit Agreement:
Notwithstanding the foregoing, to the extent required by the North Dakota Franchise Investment Law, Developer may bring an action in North Dakota for claims arising under the North Dakota Franchise Investment Law.
- Waiver of Punitive Damages. The following is added to the end of Section 12.G (Waiver of Punitive Damages) of the Multi-Unit Agreement:
Franchisor and Franchisee acknowledge 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, Item 17 addresses the waiver of punitive damages and jury trials within the Bft Multi-Unit Agreement, but the specific sections vary by state. For franchisees operating in North Dakota, Section 12.G addresses the waiver of punitive damages, but notes that certain parts of this provision might not be enforceable under the North Dakota Franchise Investment Law. Section 12.H, concerning the waiver of a jury trial, is deleted to the extent required by the North Dakota Franchise Investment Law.
For Bft franchisees in Minnesota, Sections 12.G (Waiver of Punitive Damages) and 12.H (Waiver of Jury Trial) of the Multi-Unit Agreement are deleted if and to the extent required by the Minnesota Franchises Law.
In Maryland, Item 17 does not specifically address the waiver of punitive damages, but it does mention that Section 12.H of the Multi-Unit Agreement relates to the waiver of jury trials. It also notes that a Maryland franchise regulation considers it an unfair or deceptive practice to require a franchisee to waive their right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Registration and Disclosure Law.