When is a release or waiver of rights in the Caring Transitions franchise agreement considered void?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
njunctive relief, however, we may seek injunctive relief. A court will determine if a bond is required. Any language to the contrary in the disclosure document or franchise agreement is null and void.
5. GENERAL RELEASE
Minn. Rule 2860.4400(D) prohibits a franchisor from requiring a franchisee to assent to a general release. Any provision in the Franchise Agreement to the contrary is void.
6. STATUTE OF LIMITATIONS
Minn. Stat. Sec. 80C.17, Subd. 5 provides that an action may be commenced to enforce any provision of the Minnesota Franchise Act (Minn. Stat. Secs. 80C.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.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, a release or waiver of rights within the franchise agreement can be deemed void under specific circumstances, particularly concerning state franchise laws. In Minnesota, any provision in the Franchise Agreement that requires a franchisee to agree to a general release is void, as per Minn. Rule 2860.4400(D). Similarly, any language contradicting the three-year statute of limitations for enforcing provisions of the Minnesota Franchise Act (Minn. Stat. Secs. 80C.01 to 80C.22) is considered null and void. Furthermore, in North Dakota, any provision restricting jurisdiction or venue to a forum outside of North Dakota, requiring the application of laws from another state, mandating a waiver of a jury trial, or waiving exemplary or punitive damages is void.
In Washington, a release or waiver of rights is void if it purports to waive compliance with any provision under the Washington Franchise Investment Protection Act, except when executed as part of a negotiated settlement after the agreement is in effect and both parties are represented by independent counsel, as per RCW 19.100.220(2). This also applies to releases or waivers executed in connection with a renewal or transfer of a franchise, with the same exception for negotiated settlements with independent counsel. Additionally, provisions that unreasonably restrict or limit the statute of limitations period for claims under the Washington Franchise Investment Protection Act, or rights such as a right to a jury trial, may not be enforceable.
These stipulations are crucial for prospective Caring Transitions franchisees as they highlight the importance of understanding state-specific franchise laws and how they can override certain provisions in the franchise agreement. Franchisees should be aware that certain waivers or releases they might be asked to sign may not be enforceable, especially if they contravene state franchise laws designed to protect franchisees. It is advisable for franchisees to seek legal counsel to ensure full comprehension of their rights and obligations under the franchise agreement and relevant state laws.