Does the one-year limitation on claims apply to all claims against Creative World School?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
must be made by written notice to the other party within 3 years from the occurrence of the facts giving rise to such claim (regardless of when it becomes known).
-
- Governing Law. The following sentence is added at the end of Section 20.07:
MINN. STAT. §80C.21 AND MINN. RULE 2860.4400J PROHIBIT US FROM REQUIRING LITIGATION TO BE CONDUCTED OUTSIDE MINNESOTA. IN ADDITION, NOTHING IN THE DISCLOSURE DOCUMENT OR AGREEMENT CAN ABROGATE OR REDUCE ANY OF YOUR RIGHTS AS PROVIDED FOR IN MINNESOTA STATUTES, CHAPTER 80C, OR YOUR RIGHTS TO ANY PROCEDURE, FORUM, OR REMEDIES PROVIDED FOR BY THE LAWS OF THE JURISDICTION.
-
- Injunctive Relief. Nothing in the Franchise Agreement is construed to mean that you are consenting to our obtaining injunctive relief. We may, however, seek injunctive relief. The court will determine if a bond is required.
-
- Waiver of Jury Trial. Section 20.09 is deleted in its entirety.
Intending to be bound, you and we sign and deliver this Rider in 2 counterparts effective on the Agreement Date, regardless of the actual date of signature.
CREATIVE WORLD SCHOOLS FRANCHISING COMPANY, INC. YOU Ву: Bv:
ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR CREATIVE WORLD SCHOOLS FRANCHISING COMPANY, INC. STATE OF NEW YORK
1. The following is added to the disclosure 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.
2. The following information is added to the cover page of the Franchise Disclosure Document:
INFORMATION COMPARING FRANCHISORS IS AVAILABLE. CALL THE STATE ADMINISTRATORS LISTED IN EXHIBIT A OR YOUR PUBLIC LIBRARY FOR SOURCES OF INFORMATION. REGISTRATION OF THIS FRANCHISE BY NEW YORK STATE DOES NOT MEAN THAT NEW YORK STATE RECOMMENDS IT OR HAS VERIFIED THE INFORMATION IN THIS FRANCHISE DISCLOSURE DOCUMENT. IF YOU LEARN THAT ANYTHING IN THE FRANCHISE DISCLOSURE DOCUMENT IS UNTRUE, CONTACT THE FEDERAL TRADE COMMISSION AND NEW YORK STATE DEPARTMENT OF LAW, BUREAU OF INVESTOR PROTECTION AND SECURITIES, 120 BROADWAY, 23RD FLOOR, NEW YORK, NEW YORK 10271. THE FRANCHISOR MAY, IF IT CHOOSES, NEGOTIATE WITH YOU ABOUT ITEMS COVERED IN THE FRANCHISE DISCLOSURE DOCUMENT. HOWEVER, THE FRANCHISOR CANNOT USE THE NEGOTIATING PROCESS TO PREVAIL UPON A PROSPECTIVE FRANCHISEE TO ACCEPT TERMS WHICH ARE LESS FAVORABLE THAN THOSE SET FORTH IN THIS FRANCHISE DISCLOSURE DOCUMENT.
3. The following is added at the end of Item 3:
Except as provided above, with regard to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- A. No such party has an administrative, criminal or civil action pending against that person alleging: a felony, a violation of a franchise, antitrust, or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations.
- B.
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 on claims does not apply universally. For franchisees in New York and Maryland, specific addenda and riders modify the standard agreement, particularly regarding waivers and limitations of claims. In New York, no statement signed by a franchisee can waive claims under state franchise law or disclaim reliance on the franchisor.
For Maryland franchisees, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within 3 years after the franchise is granted. Additionally, the general release required for renewal, sale, or transfer does not apply to liabilities under Maryland law, and franchisees can bring lawsuits in Maryland for claims under this law.
The standard agreement includes a clause amending the limitations of claims, extending the period to 3 years from the occurrence of the facts giving rise to the claim. However, the specific stipulations for Maryland franchisees and the general prohibition of waivers in New York indicate that the limitations on claims are subject to state-specific regulations, potentially offering more protection to franchisees in those states.