Does the addendum included in the Caring Transitions Franchise Agreement supersede any other term of any document executed in connection with the franchise regarding reliance on statements made by the franchisor?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
C.01 to 80C.22, inclusive) or any rule or order thereunder within three years after the cause of action accrues. Any language to the contrary in the Franchise Disclosure Document or the Franchise Agreement is null and void.
- No statement, questionnaire, or acknowledgement signed or agreed to by you 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 us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.
MINNESOTA ADDENDUM TO FRANCHISE AGREEMENT
This addendum is attached to and incorporated in the C.T. Franchising Systems, Inc. ("CTFS") Franchise Disclosure Document and Franchise Agreement as required by the Minnesota Franchise Act and the administrative rules and regulations relating thereto. The terms of this addendum shall control in the event of conflicting terms in the Franchise Disclosure Document or Franchise Agreement.
1. GOVERNING LAW, CHOICE OF FORUM, JURISDICTION AND VENUE
Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibit CTFS from requiring litigation to be conducted outside Minnesota. In addition, nothing in the disclosure document or agreement can abrogate or reduce any of franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
2. NOTICE OF TERMINATION AND NON-RENEWAL
With respect to franchises governed by Minnesota law, CTFS will comply with Minn. Stat. Sec. 80C14, Subds.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to the 2025 Caring Transitions Franchise Disclosure Document, the addenda included in the franchise agreement address the franchisee's reliance on statements made by the franchisor. For franchisees in New York, Illinois, and Minnesota, specific addenda clarify that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims of fraud or disclaim reliance on statements made by Caring Transitions or its representatives. These provisions explicitly supersede any other conflicting terms in any document related to the franchise agreement.
These addenda are designed to protect franchisees by ensuring they retain their rights under state franchise laws, particularly regarding fraud in the inducement. This means that if a franchisee believes they were misled by statements made by Caring Transitions during the franchise sales process, they are not prevented from pursuing legal action, regardless of any agreements they may have signed. The inclusion of these addenda reflects a commitment to compliance with state regulations and a recognition of franchisee rights.
For a prospective Caring Transitions franchisee, this information is crucial as it provides assurance that their legal rights are protected, especially in states like New York, Illinois, and Minnesota. It is important to carefully review the specific addendum for their state to understand the full extent of these protections. Franchisees in other states should inquire about similar protections and ensure they understand their rights regarding reliance on franchisor statements.