What claims are exempt from the one-year limitation period in the Creative World School agreement?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire or acknowledgement signed or agreed to by a franchisee 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 behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
The general release required as a condition of renewal, sale, and/or assignment or transfer will not apply to any liability under the Maryland Franchise and Disclosure Law (the "Maryland Law").
(b) Any claims arising under the Maryland Law must be brought within 3 years after the grant of the franchise.
(c) A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, the standard one-year limitation period for claims may not apply in certain situations, particularly concerning state franchise laws. Specifically, for franchisees in Maryland, the general release required for renewal, sale, assignment, or transfer does not apply to liabilities arising under the Maryland Franchise and Disclosure Law. Furthermore, franchisees in Maryland have three years from the grant of the franchise to bring claims under the Maryland Franchise Registration and Disclosure Law, and they may bring lawsuits in Maryland for such claims.
Similarly, in New York, Virginia, and Illinois, no statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship can waive claims under applicable state franchise law, including claims of fraud in the inducement, or disclaim reliance on the franchisor. This provision overrides any conflicting terms in documents related to the franchise agreement. These stipulations ensure that franchisees retain their rights and protections under state laws, regardless of any agreements or waivers they may have signed.
These exemptions are significant for prospective Creative World School franchisees as they provide additional legal safeguards. Franchisees should be aware of their rights under state franchise laws and understand that certain agreements cannot waive these rights. This information is crucial for making informed decisions and protecting their investment in a Creative World School franchise. Franchisees should consult with a legal professional to fully understand their rights and obligations under the franchise agreement and applicable state laws.