Does the C12 Group franchise agreement include a waiver of punitive damages?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
equire, except in certain specified cases, that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the franchise agreement. Minn. Rule Part 2860.4400J prohibits a franchisee from waiving his rights to a jury trial or waiving his rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction, or consenting to liquidated damages, termination penalties or judgment notes. To the extent that this Franchise Agreement is governed by Minnesota law, any provisions to the contrary in the Franchise Agreement are hereby deemed to be deleted.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
Based on the 2025 C12 Group Franchise Disclosure Document, the franchise agreement's stance on punitive damages depends on the franchisee's location. For franchisees in Minnesota and North Dakota, the franchise agreement cannot include a waiver of rights to any procedure, forum, or remedies provided by the laws of the jurisdiction.
Specifically, the Minnesota addendum states that nothing in the Franchise Disclosure Document or agreement can reduce a franchisee's rights under Minnesota Statutes, Chapter 80C, including rights to any procedure, forum, or remedies provided by law. Similarly, the North Dakota addendum indicates that franchisees cannot waive their rights to a jury trial. To the extent that the Franchise Agreement is governed by North Dakota law, any provisions to the contrary in the Franchise Agreement are deemed to be deleted.
For Washington franchisees, certain sections of the franchise agreement do not apply. However, the FDD does not explicitly state whether the standard C12 Group franchise agreement contains a waiver of punitive damages. A prospective franchisee should clarify with C12 Group whether the standard agreement includes such a waiver and how it is handled in states other than Minnesota, North Dakota, and Washington.