Can provisions in the Caring Transitions franchise agreement waive the right to a jury trial?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
ere the parties are represented by independent counsel, in accordance with RCW 19.100.220(2). In addition, any such release or waiver executed in connection with a renewal or transfer of a franchise is likewise void except as provided for in RCW 19.100.220(2).
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- Statute of Limitations and Waiver of Jury Trial. Provisions contained in the franchise agreement or related agreements that unreasonably restrict or limit the statute of limitations period for claims under the Washington Franchise Investment Protection Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
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- Transfer Fees. Transfer fees are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
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- Termination by Franchisee. The franchisee may terminate the franchise agreement under any grounds permitted under state law.
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- Certain Buy-Back Provisions.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the enforceability of provisions relating to waiving the right to a jury trial depends on the specific state laws.
In Washington, provisions in the franchise agreement that unreasonably restrict or limit the statute of limitations period for claims under the Washington Franchise Investment Protection Act, or rights or remedies under the Act, such as the right to a jury trial, may not be enforceable. This suggests that while the agreement might contain such waivers, they may not hold up in court if they are deemed to be overly restrictive under Washington law.
In Minnesota, the FDD explicitly states that Minnesota law prohibits a franchisee from waiving their right to a jury trial. The document further clarifies that any language in the disclosure document or franchise agreement that contradicts this is considered null and void. Therefore, franchisees in Minnesota retain their right to a jury trial, regardless of what the franchise agreement might state.
Prospective franchisees should be aware of these state-specific differences and consult with legal counsel to understand their rights fully. The enforceability of such waivers can significantly impact a franchisee's ability to seek legal recourse in case of disputes with Caring Transitions.