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Does state law ever supersede provisions in the Deck Medic Franchise Agreement?

Deck_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

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Rhode Island FDD Amendment

Amendments to the Deck Medic Franchise Disclosure Document

Item 17, "Renewal, Termination, Transfer and Dispute Resolution," Item 17 is supplemented by the addition of the following:

  • A. The Rhode Island Franchise Investment Act, R.I. Gen. Law Ch. 395 Sec. 19-28.1-14 provides that a provision in a Franchise Agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act.
  • B. Any general release as a condition of renewal, termination or transfer will be void with respect to claims under the Rhode Island Franchise Investment Act.

Virginia FDD Amendment

Amendments to the Deck Medic Franchise Disclosure Document

Item 17, "Renewal, Termination, Transfer and Dispute Resolution," Item 17(h) is supplemented by the addition of the following:

Under Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in Deck Medic franchise agreement do not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.

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 any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

Washington FDD Amendment

Amendments to the Deck Medic Franchise Disclosure Document

In recognition of the Washington State Franchise Investment Protection Act, Chapter 19.100 RCW, the following amendments are made to the Franchise Disclosure Document:

    1. In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
    1. RCW 19.100.180 may supersede the Franchise Agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the Franchise Agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
    1. In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of

the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. In addition, if litigation is not precluded by the Franchise Agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.

    1. A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
    1. Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
    1. Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annually for inflation). In addition, a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee under RCW 49.62.030 unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year (an amount that will be adjusted annually for inflation). As a result, any provisions contained in the Franchise Agreement or elsewhere that conflict with these limitations are void and unenforceable in Washington.
    1. RCW 49.62.060 prohibits a franchisor from restricting, restraining, or prohibiting a franchisee from (i) soliciting or hiring any employee of a franchisee of the same franchisor or (ii) soliciting or hiring any employee of the franchisor. As a result, any such provisions contained in the Franchise Agreement or elsewhere are void and unenforceable in Washington.
  • 8. 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 any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

Wisconsin FDD Amendment Amendments to the Deck Medic Franchise Disclosure Document

Item 17, "Renewal, Termination, Transfer and Dispute Resolution," Item 17 is supplemented by the addition of the following:

The Wisconsin Fair Dealership Law Title XIV-A Ch. 135, Section 135.01-135.07 may affect the termination provision of the Franchise Agreement.

STATE SPECIFIC AMENDMENTS TO FRANCHISE AGREEMENT

CALIFORNIA FRANCHISE AGREEMENT AMENDMENT

Amendments to the Deck Medic, Inc. Franchise Agreement

In recognition of the requirements of California Franchise Investment Law, California Corporations Code Sections 31000 through 31516, the undersigned agree to the following modifications to the Deck Medic, Inc. Franchise Agreement (the "Franchise Agreement") as follows:

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 any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

IN WITNESS WHEREOF, the parties have duly executed and delivered this California Amendment to the Deck Medic, Inc. Franchise on the same date as the Franchise Agreement was executed.

Franchisor: Deck Medic, Inc. Franchisee:
By: Signature
Signature
Name and Title (please print) Name (please print)
Dated Dated

HAWAII FRANCHISE AGREEMENT AMENDMENT

Amendments to the Deck Medic Franchise Agreement:

In recognition of the requirements of the Hawaii Franchise Investment Law, the undersigned agree to the following modifications to Deck Medic, Inc. Franchise Agreement (the "Franchise Agreement"), as follows:

  1. Sub-Article 14.C.(6). Sub-article 14.C.(6), under the Article section titled "Conditions for Approval of Transfer," is supplemented by the addition of the following language:

; provided, however, that all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of the Hawaii Franchise Investment Law, shall remain in force; it being the intent of this provision that the non-waiver provisions of the Hawaii Franchise Investment Law be satisfied;

Source: Item 22 — CONTRACTS (FDD pages 42–43)

What This Means (2024 FDD)

According to the 2024 Deck Medic Franchise Disclosure Document, state laws can supersede provisions in the franchise agreement. Several states have specific amendments that recognize this.

For instance, in Washington, the Washington Franchise Investment Protection Act (Chapter 19.100 RCW) takes precedence over conflicting provisions in the franchise agreement. Specifically, RCW 19.100.180 may supersede the agreement, especially concerning termination and renewal. Court decisions may also override the franchise agreement in these areas. Similarly, in North Dakota, several articles of the franchise agreement are amended to ensure compliance with the North Dakota Franchise Investment Law, rendering certain provisions unenforceable, such as those requiring franchisees to sign general releases upon renewal, consent to termination or liquidated damages, or agree to out-of-state jurisdiction.

In Illinois, the Illinois Franchise Disclosure Act dictates that Illinois law governs the franchise agreement, and any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may occur outside the state. California's Franchise Investment Law also voids waivers of rights under the Franchise Relations Act, and any provision requiring a franchisee to waive specific provisions of the law is unenforceable. Additionally, in Virginia, the Virginia Retail Franchising Act states that any grounds for default or termination stated in the Deck Medic franchise agreement that do not constitute "reasonable cause" under Virginia law may not be enforceable. Finally, the Wisconsin Fair Dealership Law may affect the termination provision of the Franchise Agreement.

These state-specific amendments ensure that Deck Medic franchisees' rights are protected under local laws, even if the franchise agreement contains conflicting terms. Prospective franchisees should carefully review the amendments applicable to their state to understand their rights and how state law may impact their franchise agreement.

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.