Is a Care Plus Medical Ucc franchisee required to consent to a limitation of claims?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
e to the sale of franchises.
- (f) Performance During Arbitration or Litigation. Unless this Agreement has been terminated, Care Plus Medical UCC and Franchisee will comply with this Agreement and perform their respective obligations under this Agreement during the arbitration or litigation process.
- 17.2 Damages. In any controversy or claim arising out of or relating to this Agreement, each party waives any right to punitive or other monetary damages not measured by the prevailing party's actual damages, except damages expressly authorized by federal statute and damages expressly authorized by this Agreement.
- 17.3 Waiver of Class Actions. The parties agree that any claims will be arbitrated, litigated, or otherwise resolved on an individual basis, and waive any right to act on a class-wide basis.
- 17.4 Time Limitation. Any arbitration or other legal action arising from or related to this Agreement must be instituted within two years from the date such party discovers the conduct or event that forms the basis of the arbitration or other legal action. The foregoing time limit does not apply to claims (i) by one party related to non-payment under this Agreement by the other party, (ii) for indemnity under Article 16, or (iii) related to unauthorized use of Confidential Information or the Marks.
- 17.5 Venue Other Than Arbitration. For any legal proceeding not required to be submitted to arbitration, the parties agree that any such legal proceeding will be brought in the United States District Court where Care Plus Medical UCC's headquarters is then located.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, franchisees are subject to certain limitations of claims. Specifically, any arbitration or other legal action arising from or related to the Franchise Agreement must be initiated within two years from the date the party discovers the conduct or event that forms the basis of the action. However, this time limit does not apply to claims related to non-payment, indemnity, or unauthorized use of confidential information or the Care Plus Medical Ucc marks.
In addition to the time limitation, the Franchise Agreement also includes a waiver of class actions, meaning that any claims must be resolved on an individual basis. Franchisees waive the right to participate in class-wide actions against Care Plus Medical Ucc. Furthermore, in any controversy or claim arising out of or relating to the Franchise Agreement, both parties waive any right to punitive or other monetary damages not measured by the prevailing party's actual damages, unless such damages are expressly authorized by federal statute or the agreement itself.
For prospective franchisees, these limitations mean that they have a limited time frame to bring legal action against Care Plus Medical Ucc, and they are giving up the right to participate in class action lawsuits. They are also limited in the type of damages they can recover in a dispute. Franchisees operating in Minnesota should note that the Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5, which states that "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues."
These types of clauses are relatively common in franchise agreements, as franchisors seek to manage their legal risks and avoid costly class action litigation. However, prospective franchisees should carefully consider the implications of these limitations and seek legal advice before signing the Franchise Agreement. Franchisees operating in New York are not required to assent to a release, assignment, novation, waiver or estoppel which would relieve Care Plus Medical UCC from any duty or liability imposed by New York General Business Law, Article 33.