exception

Under what circumstances is the arbitrator prohibited from awarding relief related to Deck Medic?

Deck_Medic Franchise · 2024 FDD

Answer from 2024 FDD Document

ch provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Illinois Franchise Disclosure Act (815 ILCS 705/1 to 705/45) are met independently without reference to this amendment.

IN WITNESS WHEREOF, the parties have duly executed and delivered this Illinois amendment to Deck Medic, Inc. Franchise Agreement 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 Signature Name (please print) Dated | |

MARYLAND FRANCHISE AGREEMENT AMENDMENT

Amendments to the Deck Medic Franchise Agreement:

In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law, the parties to the attached Deck Medic, Inc. Franchise Agreement (the "Franchise Agreement"), as follows:

    1. The franchise agreement provides that disputes are resolves through arbitration. A Maryland franchise regulation states that it is an unfair or deceptive practice to require a franchisee to waive its right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Law. In light of the Federal Arbitration Act, there is some dispute as to whether this forum selection requirement is legally enforceable.
    1. The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
    1. Article 18.G. of the Franchise Agreement, under the heading "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction," shall be amended by the addition of the following statement added to Article 18.G. of the Franchise Agreement:

A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.

  1. Article 18.I. of the Franchise Agreement, under the heading "Limitations of Claims," shall be amended by the addition of the following statement added to Article 18.I. of the Franchise Agreement:

Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.

A general release required as a condition of renewal, sale and/or assignment or transfer of a Franchise Agreement shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.

    1. Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law are met independently without reference to this amendment.
    1. 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.

[SIGNATURE PAGE TO FOLLOW]

IN WITNESS WHEREOF, the parties have duly executed and delivered this Maryland amendment to Deck Medic, Inc. Franchise Agreement 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 Signature Name (please print) Dated |

MINNESOTA FRANCHISE AGREEMENT AMENDMENT

Amendments to the Deck Medic Franchise Agreement:

In recognition of the requirements of the Minnesota Statutes, Chapter 80C. and Minnesota Franchise Rules, Chapter 2860, the parties to the attached Deck Medic, Inc. Franchise Agreement (the "Franchise Agreement"), as follows:

  1. Article 14.C. of the Franchise Agreement, under the heading "Conditions for Approval of Transfer," subarticle 14.C.(6) is supplemented with 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 Minnesota Franchise Act, Minn. Stat. Section 80C.14 et seq. and Minnesota Rules 2860.4400(D), shall remain in force; it being the intent of this provision that the non-waiver provisions of the Minnesota Rules 2860.4400(D) be satisfied; and

Minnesota law provides a franchisee with certain termination and non-renewal rights. Minn. Stat. Sect. 80C.14 Subdivisions 3, 4, and 5 require, except in certain specified cases, that franchisee be given 180 days-notice of nonrenewal of this Agreement by Franchisor.

  1. Article 15.B.

Source: Item 23 — RECEIPTS (FDD pages 43–228)

What This Means (2024 FDD)

Based on the 2024 Deck Medic Franchise Disclosure Document, there are no explicit prohibitions on an arbitrator's ability to award relief. However, the document includes amendments for several states that address dispute resolution and franchisee rights, which could indirectly limit the arbitrator's scope.

For example, the Maryland FDD Amendment states that a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, despite the franchise agreement generally requiring disputes to be resolved through arbitration. This suggests that an arbitrator's decision might not be binding on claims specifically related to Maryland franchise law, potentially allowing a franchisee to seek additional relief through the courts. Similarly, the Michigan FDD Amendment lists several provisions that are considered void and unenforceable if they appear in the franchise documents, including those that prohibit a franchisee from joining an association of franchisees or that require litigation to be conducted outside of Michigan.

The Virginia FDD Amendment supplements Item 17 regarding dispute resolution, stating that it is unlawful for Deck Medic to cancel a franchise without reasonable cause, and if any grounds for default or termination stated in the Deck Medic franchise agreement do not constitute "reasonable cause" as defined by Virginia law, that provision may not be enforceable. The Washington FDD Amendment indicates that the Washington Franchise Investment Protection Act may supersede the Franchise Agreement in areas of termination and renewal.

Prospective Deck Medic franchisees should carefully review the FDD, including all state-specific amendments, to understand their rights and any limitations on dispute resolution processes in their specific state. It is important to consult with a legal professional to fully understand the implications of these provisions and how they might affect the franchisee's ability to seek relief in case of a dispute with Deck Medic.

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.