How is the Canine Dimensions Franchise Agreement amended regarding representations requiring a franchisee to assent to a release, estoppel, or waiver of liability?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
tanding the language in the Franchise Agreement. The appropriate sections of the Franchise Agreement are amended accordingly.
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- Exhibit G to the FDD is hereby amended to provide that 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.
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- The Franchise Agreement is hereby amended to state that any representations which require a prospective franchisee to assent to any general release, estoppel or waiver of liability as a condition of purchasing a franchise 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.
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- The Franchise Agreement provides that disputes are resolved through arbitration. A Maryland franchise regulation states that it is an unfair or deceptive practice to require a franchisee to waive its right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Law. In light of the Federal Arbitration Act, there is some dispute as to whether this forum selection requirement is legally enforceable.
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- The registered agent authorized to receive process in Maryland is the Maryland Securities Commissioner, 200 St. Paul Place, Baltimore, Maryland 21202-2020.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in 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.
The undersigned do hereby acknowledge receipt of this addendum.
| Addendum dated this day of, 20 | IN WITNESS WHEREOF, the parties hereto have duly executed, sealed and delivered this |
|---|---|
| ATTEST CANINE DIMENSIONS FRANCHISING, LLC | |
| Witness Name: | By: Title: FRANCHISEE: |
| Witness |
ADDENDUM TO CANINE DIMENSIONS FRANCHISING, LLC DISCLOSURE DOCUMENT FOR THE STATE OF MINNESOTA
Despite anything to the contrary in the Franchise Agreement, the following provisions will supersede and apply to all franchises offered and sold in the State of Minnesota:
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- Any provision in the Franchise Agreement that would require you to assent to a release, assignment, novation or waiver that would relieve any person from liability imposed by Minnesota Statutes, Sections 80C.01 to 80C.22 will be void to the extent that such contractual provision violates such law.
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- Minnesota Statute Section 80C.21 and Minnesota Rule 2860.4400J prohibit the franchisor from requiring litigation to be conducted outside of Minnesota. In addition, nothing in the Franchise Disclosure Document or Agreement can abrogate or reduce any of your rights as provided for in Minnesota Statutes, Chapter 80C, or your rights to any procedure, forum, or remedies provided for by the laws of Minnesota.
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- Minn. Rule Part 2860.4400J.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to the 2025 Canine Dimensions Franchise Disclosure Document, several amendments address representations requiring franchisees to assent to a release, estoppel, or waiver of liability, particularly concerning state franchise laws. For franchisees in Maryland, any representations requiring them to agree to a release, estoppel, or waiver of liability as a condition of purchasing the franchise will not act as a release, estoppel, or waiver of liability under the Maryland Franchise Registration and Disclosure Law. This amendment extends to Exhibit G of the FDD and Schedule D of the Franchise Agreement, specifically the Franchisee Disclosure Acknowledgment Statement.
For franchisees in Minnesota, any provision in the Franchise Agreement that requires assent to a release, assignment, novation, or waiver relieving any person from liability imposed by Minnesota Statutes, Sections 80C.01 to 80C.22 is void if it violates such law. Additionally, the FDD and agreement cannot reduce any rights provided under Minnesota Statutes, Chapter 80C, or rights to procedures, forums, or remedies under Minnesota law. Minnesota Rule Part 2860.4400J prohibits franchisees from waiving their rights to a jury trial or any procedure, forum, or remedies provided by Minnesota laws, or consenting to liquidated damages, termination penalties, or judgment notes.
Similarly, for franchisees in Iowa, any provision in the Franchise Agreement or Franchisee Disclosure Acknowledgement Statement requiring prospective assent to a release, assignment, novation, waiver, or estoppel that relieves any person from liability imposed by the Iowa Business Opportunity Promotions Law (Iowa Code Ch. 551A) is void to the extent it violates that law. Furthermore, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Canine Dimensions or its representatives. This provision supersedes any conflicting terms in documents related to the franchise. These amendments collectively aim to protect franchisees' rights under various state franchise laws, ensuring that they cannot inadvertently waive their legal protections through standard franchise agreement clauses.