factual

Does the Crab N Spice franchise agreement require a franchisee to consent to a limitation of claims?

Crab_N_Spice Franchise · 2024 FDD

Answer from 2024 FDD Document

  • (9) Limitation of Claims: Franchisee is not required to consent to a limitation of claims. The statute of limitations under North Dakota law applies.

Source: Item 22 — CONTRACTS (FDD pages 50–51)

What This Means (2024 FDD)

According to the 2024 Crab N Spice Franchise Disclosure Document, the standard franchise agreement does not require franchisees to consent to a limitation of claims. Specifically, the North Dakota Rider to the franchise agreement clarifies this point for franchisees operating in North Dakota.

However, the Minnesota Rider to the Crab N Spice franchise agreement amends the standard agreement regarding limitations of claims to comply with Minnesota Statutes, Section 80C.17, Subd. 5. This amendment stipulates 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 for franchises in Minnesota, any legal action related to the franchise agreement under this statute must be initiated within three years of the event that caused the action.

The Washington Addendum also addresses conflict of laws, stating that the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will prevail in case of any conflict. It further clarifies that any release or waiver of rights by a franchisee cannot include rights under the Washington Franchise Investment Protection Act, except under specific conditions such as a negotiated settlement with independent counsel after the agreement is in effect. Provisions that unreasonably restrict or limit the statute of limitations for claims under the Act, or rights to a jury trial, may not be enforceable in Washington.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.