Are Chocolate Fish Coffee franchisees required to consent to a limitation of claims?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
ta considers it unfair to not protect the franchisee's right to use the trademarks. Refer to Minnesota Statues, Section 80C.12, Subd. 1(g).
Minnesota Rules 2860.4400(D) prohibits a franchisor from requiring a franchisee to assent to a general release.
The franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400J. Also, a court will determine if a bond is required.
The Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the franchise agreement includes a Limitations of Claims section that must comply with Minnesota Statutes, Section 80C.17, Subd. 5. Therefore, the agreement is amended to state that "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues."
This means that franchisees are subject to a statute of limitations of three years for any legal actions brought under Minnesota Statutes, Section 80C.17. This limits the time a franchisee has to bring a claim against Chocolate Fish Coffee, which is a common practice in franchising to provide predictability and manage legal risks. However, the franchisee cannot consent to Chocolate Fish Coffee obtaining injunctive relief, and a court will determine if a bond is required.
Additionally, the FDD includes riders for franchisees in New York and North Dakota that modify certain provisions of the standard franchise agreement to comply with state-specific laws. For example, the New York rider specifies that franchisees are not required to assent to releases or waivers that would relieve Chocolate Fish Franchising from any duty or liability imposed by New York General Business Law, Article 33. It also states that any condition in the agreement purporting to waive compliance with New York General Business Law is deleted. These riders highlight the importance of understanding how state laws can impact the franchise agreement and the franchisee's rights.