Are there any exceptions to the one-year limitation of actions for claims against Byrider?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
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- LIMITATION OF ACTIONS. The following sentence is added to the end of Section 20.9 of the Franchise Agreement:
Franchise must bring any claims arising under the Maryland Franchise Registration and Disclosure Law within 3 years after Company grants the Franchisee the franchise.
IN WITNESS WHEREOF, the parties have executed and delivered this Rider on the dates noted below, to be effective as of the Effective Date of the Franchise Agreement.
- 20.9 Limitation of Actions. Except for claims arising from the Franchisee's non-payment or underpayment of amounts owed to the Company or its affiliates, any and all claims arising out of or relating to this Agreement or the relationship between the Franchisee and the Company will be barred unless a judicial or arbitration proceeding is commenced within one (1) year from the date on which the party asserting the claim knew or should have known of the facts giving rise to the claims.
However, to the extent required by applicable law, all rights you enjoy and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of this proviso that the non-waiver provisions of General Business Law Sections 687(4) and 687(5) be satisfied.
Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J might prohibit Byrider Franchising Partners from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring you to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Franchise Disclosure Document or Franchise Agreement can abrogate or reduce any of your rights as provided for in Minnesota Statutes 1984, Chapter 80C, or your rights to any procedure, forum or remedies provided for by the laws of the jurisdiction. Those provisions also provide that no condition, stipulations or provision in the Franchise Agreement will in any way abrogate or reduce any of your rights under the Minnesota Franchises Law, including, if applicable, the right to submit matters to the jurisdiction of the courts of Minnesota.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, there are exceptions to the one-year limitation of actions. Generally, any claims arising out of the franchise agreement or the relationship between the franchisee and Byrider must be brought within one year from the date the party knew or should have known about the facts giving rise to the claim. However, this limitation does not apply to claims arising from the franchisee's non-payment or underpayment of amounts owed to Byrider or its affiliates.
Additionally, franchisees in Maryland have a longer period to bring claims under the Maryland Franchise Registration and Disclosure Law. Specifically, a franchisee must bring any claims arising under this law within three years after Byrider grants the franchise.
Furthermore, the FDD notes that to the extent required by applicable law, all rights enjoyed by the franchisee and any causes of action arising in their favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force. This ensures that the non-waiver provisions of General Business Law Sections 687(4) and 687(5) are satisfied, potentially providing additional exceptions or longer limitation periods for franchisees in New York. Similarly, Minnesota law might prohibit Byrider from reducing any of a franchisee's rights under the Minnesota Franchises Law, including rights to procedures, forums, or remedies provided by law.