Does Chocolate Fish Coffee require the franchisee to consent to a limitation of claims in the franchise agreement?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
The Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5, and therefore the applicable provision of the Agreement is amended to state "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues."
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 limitation 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 in Minnesota are subject to a three-year statute of limitations for claims arising under Minnesota Statutes, Section 80C.17. This limits the time a franchisee has to bring a legal action against Chocolate Fish Coffee.
Additionally, the FDD includes riders for New York and North Dakota that address waivers and governing law, indicating that Chocolate Fish Coffee is aware of and complies with specific state laws regarding franchise agreements. For example, the New York rider states that the franchisee is not required to assent to a release, assignment, novation, waiver, or estoppel that would relieve Chocolate Fish Franchising from any duty or liability imposed by New York General Business Law, Article 33.