What is the C12 Group franchisee prohibited from doing regarding disputes?
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.
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NORTH DAKOTA ADDENDUM TO FRANCHISE AGREEMENT
With respect to Item 17(u) of the Disclosure Document and Section XII of the Franchise Agreement, in regard to Section 51-19-09 of the North Dakota Franchise Investment Law, all arbitration or mediation must take place at a location agreeable to all parties involved and may not be remote from the franchisee's place of business.
With respect to Item 17(v) of the Disclosure Document and Section XII of the Franchise Agreement, in regard to Section 51-19-09 of the North Dakota Franchise Investment Law, franchisees are not required to consent to the jurisdiction of the courts in Texas and may fall under the jurisdiction of the courts in North Dakota.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, Minnesota franchisees are prohibited from waiving their rights to a jury trial or waiving their 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. This is according to Minn. Rule Part 2860.4400J. The FDD states that any provisions to the contrary in the Franchise Agreement are deemed to be deleted to the extent that the Franchise Agreement is governed by Minnesota law.
In Maryland, any claim arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. Additionally, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by C12 Group or its representatives. This Maryland provision supersedes any conflicting terms in franchise documents.
For North Dakota franchisees, North Dakota Franchise Investment Law, Section 51-19-10 prohibits a franchisee from waiving his rights to a jury trial. To the extent that this Franchise Agreement is governed by North Dakota law, any provisions to the contrary in the Franchise Agreement are hereby deemed to be deleted.