Are Bombs Away franchisees required to consent to a limitation of claims?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
The Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5, and therefore the applicable provision of the Agreement is amended to state "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues."
**3.
Effective Date.** This Rider is effective as of the Effective Date.
NEW YORK RIDER TO FRANCHISE AGREEMENT
This Rider amends the Franchise Agreement dated (the "Agreement"), between Bombs Away Franchising, LLC, a Wyoming Limited Liability Company ("Bombs Away Franchising") and, a ("Franchisee"). 1. Capitalized terms used but not defined in this Rider have the meanings given Definitions. in the Agreement. 2. Waivers Not Required. would relieve Bombs Away Franchising New York General Business Law, Article 33. Notwithstanding any provision of the Agreement to the contrary, Franchisee is not required to assent to a release, assignment, novation, waiver or estoppel which or any other person from any duty or liability imposed by 3. Waivers of New York Law Deleted. Agreement purporting to bind Franchisee to waive compliance by Bombs Away Franchising deleted. Any condition, stipulation, or provision in the with any provision of New York General Business Law, or any rule promulgated thereunder, is hereby 4. Governing Law. Notwithstanding any provision of the Agreement to the contrary, the New York Franchises Law shall govern any claim arising under that law. 5. Effective Date. This Rider is effective as of the Effective Date. Agreed to by: BOMBS AWAY FRANCHISING, LLC
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the franchise agreement includes a limitation of claims section that must comply with Minnesota Statutes, Section 80C.17, Subd. 5. Therefore, the agreement is amended to state that "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues."
For a Bombs Away franchisee in Minnesota, this means they are limited to a three-year window after the cause of action accrues to commence any action pursuant to Minnesota Statutes, Section 80C.17. This could significantly impact a franchisee's ability to pursue legal claims against Bombs Away if they wait longer than three years after the issue arises.
Additionally, the New York Rider to the Franchise Agreement states that franchisees in New York are not required to assent to a release, assignment, novation, waiver, or estoppel that would relieve Bombs Away Franchising from any duty or liability imposed by New York General Business Law, Article 33. Any condition in the agreement purporting to bind the franchisee to waive compliance with any provision of New York General Business Law is deleted. This provides additional protection to franchisees in New York, ensuring they do not waive their rights under New York law.
Prospective franchisees should carefully review these provisions and understand the implications of the limitations of claims and waivers in their specific state, as these can vary and significantly affect their legal rights.