factual

How does the Rider affect the Limitations of Claims section in the Bombs Away franchise agreement?

Bombs_Away Franchise · 2024 FDD

Answer 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."

ILLINOIS RIDER TO FRANCHISE AGREEMENT

  1. the violation upon which it is based, the expiration of 1 year after Franchisee become notice disclosing the violation, whichever shall first expire. Limitation of Claims. No action can be maintained to enforce any liability created by the Illinois Act unless brought before the expiration of 3 years from the act or transaction constituting aware of facts or circumstances reasonably indicating that Franchisee may have a claim for relief in respect to conduct governed by the Illinois Act, or 90 days after delivery to the Franchisee of a written

MARYLAND RIDER TO FRANCHISE AGREEMENT

  1. which provides for a period of Statute of Limitations. Any provision of the Agreement limitations for causes of action shall not apply to causes of action under the Maryland Franchise an action under such law within three years after the grant of the franchise. Law, Business Regulation Article, §14-227, Annotated Code of Maryland. Franchisee must bring

Source: Item 22 — CONTRACTS (FDD pages 35–36)

What This Means (2024 FDD)

According to Bombs Away's 2024 Franchise Disclosure Document, the effect of the Rider on the Limitations of Claims section varies by state. For instance, the Minnesota Rider amends the franchise agreement to comply with Minnesota Statutes, Section 80C.17, Subd. 5, changing the applicable provision 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." This means that in Minnesota, a franchisee has three years from when the cause of action occurs to bring a claim under Minnesota Statutes, Section 80C.17.

In Illinois, the Rider specifies that no action can be maintained to enforce any liability created by the Illinois Act unless brought before the expiration of 3 years from the act or transaction constituting the violation, 1 year after the franchisee becomes aware of facts or circumstances reasonably indicating a potential claim, or 90 days after delivery of a written notice disclosing the violation, whichever expires first. This provides a more detailed framework for the time limitation of claims under the Illinois Franchise Disclosure Act of 1987.

Maryland's Rider stipulates that any provision in the Agreement that provides limitations for causes of action will not apply to causes of action under the Maryland Franchise Law, Business Regulation Article, §14-227, Annotated Code of Maryland. Franchisees in Maryland must bring an action under such law within three years after the grant of the franchise. This ensures that the franchisee has three years from the franchise grant to bring a claim under Maryland Franchise Law, regardless of any conflicting limitations in the franchise agreement. These state-specific riders modify the general limitations of claims to align with local franchise laws, providing franchisees with specific protections and timeframes for legal action depending on their location.

Disclaimer: This information is extracted from the 2024 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.