Does the amendment to the C3 Wellness Spa Franchise Agreement specify any exceptions to the governing law?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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- All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
IN WITNESS WHEREOF, the parties have duly executed and delivered this Maryland amendment to the Aryes Franchising LLC Franchise Agreement and, if applicable, the Development Agreement on the same date as the Franchise Agreement and Development Agreement were, respectively, executed.
| Franchisor: Aryes Franchising LLC | Franchisee: | |
|---|---|---|
| Signature | Signature | |
| Name and Title (please print) | Name (please print) | |
| Dated | Dated |
MINNESOTA FRANCHISE AND DEVELOPMENT AGREEMENT AMENDMENT
Amendment to the C3 Wellness Franchise and Multi-Unit Development Agreement
In recognition of the requirements of the Minnesota Statutes, Chapter 80C. and Minnesota Franchise Rules, Chapter 2860, the parties to the attached Aryes Franchising LLC Franchise Agreement (the "Franchise Agreement") as follows:
1.Article 14.C of the Franchise Agreement, under the heading "Conditions for Approval of Transfer," subarticle 14.C(6) is supplemented with the addition of the following language:
; provided, however, that all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of the Minnesota Franchise Act, Minn. Stat. Section 80C.14 et seq. and Minnesota Rules 2860.4400(D), shall remain in force; it being the intent of this provision that the non-waiver provisions of the Minnesota Rules 2860.4400(D) be satisfied; and
Minnesota law provides a franchisee with certain termination and non-renewal rights. Minn. Stat. Sect. 80C.14 Subdivisions 3, 4, and 5 require, except in certain specified cases, that franchisee be given 180 days-notice of nonrenewal of this Agreement by Franchisor.
- Article 15.B of the Franchise Agreement, under the heading "Conditions for Renewal," sub article 15.B(8) is supplemented with the addition of the following language:
; provided, however, that all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of the Minnesota Franchise Act, Minn. Stat. Section 80C.14 et seq. and Minnesota Rules 2860.4400(D), shall remain in force; it being the intent of this provision that the non-waiver provisions of the Minnesota Rules 2860.4400(D) be satisfied; and
Minnesota law provides a franchisee with certain termination and non-renewal rights. Minn. Stat. Sect. 80C.14 Subdivisions 3, 4, and 5 require, except in certain specified cases, that franchisee be given 180 days-notice of nonrenewal of this Agreement by Franchisor.
- Under Article 11 of the Franchise Agreement, under the heading "Notification of Infringement and Claims," the subarticle 11.C. shall be supplemented by the addition of the following:
Franchisor agrees to protect Franchisee, to the extent required by the Minnesota Franchise Act, against claims of infringement or unfair competition with respect to Franchisee's use of the Marks when, in the opinion of Franchisor's counsel, Franchisee's rights warrant protection pursuant to Article 11.E. of this Agreement.
- Under Article 14 of the Franchise Agreement, under the heading "Conditions for Approval of Transfer," the subarticle 14.C. shall be supplemented by the addition of the following:
Franchisor shall not unreasonably withhold consent to transfer the Franchise Agreement.
- Under Article 16 of the Franchise Agreement, under the heading "Defaults and Automatic Termination Upon Written Notice Without Cure Period," the subarticle 16.A.(2). shall be supplemented by the addition of the following:
Article 16.A.(2) will not be enforced to the extent prohibited by applicable law.
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- Under Article 16 of the Franchise Agreement, under the heading "Defaults and Automatic Termination After 30 Day Cure Period," the subarticle 16.A.(4)(f), shall be supplemented by the addition of the following:
- Subarticle 16.A.(4)(f) will not be enforced to the extent prohibited by applicable law.
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- Under both subarticles 16.A.(2) and 16.A.(4) of the Franchise Agreement, the following is added:
- Minnesota law provides a franchisee with certain termination rights. Minn. Stat. Sect. 80C.14 Subdivisions 3, 4, and 5 require, except in certain specified cases, that franchisee be given 90 daysnotice of termination (with 60 days to cure) of this Agreement.
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- Article 18.F. of the Franchise Agreement, under the heading "Governing Law", shall be amended by the addition of the following statement added to the end of the last sentence of Article 18.F.:
- ; except to the extent otherwise prohibited by applicable law with respect to claims arising under the Minnesota Franchise Act.
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- Article 18.G. of the Franchise Agreement and, if Franchisee executes a Development Agreement, Article 7.6 of the Development Agreement, under the heading "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction", shall be amended by the addition of the following statement added to the end of the last sentence of Article 18.G. of the Franchise Agreement and Article 7.6 of the Development Agreement:
- ; except to the extent otherwise prohibited by applicable law with respect to claims arising under the Minnesota Franchise Act.
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- Article 18.K of the Franchise Agreement, and if Franchisee executes a Development Agreement, Article 7.10 of the Development Agreement, under the heading "Waiver of Jury Trial", shall be supplemented by the addition of the following statement at the end of the sentence contained in Article 18.K. of the Franchise Agreement and Article 7.10 of the Development Agreement:
- ; except that nothing in this Agreement should be considered a waiver of any right conferred upon Franchisee by the Minnesota Franchise Act.
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- Article 18.I.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa Franchise Disclosure Document, there are specific amendments addressing governing law exceptions for franchisees in Minnesota, Washington, and North Dakota.
For Minnesota franchisees, the amendment ensures that all rights and causes of action arising from the Minnesota Franchise Act remain in force, specifically addressing non-waiver provisions. It also stipulates that franchisees must be given 180 days' notice of nonrenewal, except in certain specified cases, as required by Minnesota law.
For Washington franchisees, the FDD states that the arbitration site for disputes must be in Washington State or a mutually agreed-upon location. In case of conflict of laws, the Washington Franchise Investment Protection Act will take precedence. Additionally, the amendment clarifies the limitations on non-competition agreements, aligning them with Washington state law, including earnings thresholds and duration restrictions.
For North Dakota franchisees, the amendment specifies that provisions requiring franchisees to sign a general release upon renewal, consent to termination or liquidated damages, or adhere to unenforceable non-compete covenants are not enforceable in North Dakota. It also addresses jurisdiction, stating that requiring franchisees to consent to courts outside North Dakota may not be enforceable, and North Dakota law shall apply. Furthermore, it clarifies that waiving trial by jury or exemplary and punitive damages is not enforceable under North Dakota law.