What claims against Deer Solution are exempt from the two-year/one-year limitation?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring the franchisee to consent to a waiver of exemplary and punitive damages are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law."
Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring a franchisee to consent to a limitation of claims within one year have been determined to be unfair, unjust, and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law.
Therefore, for North Dakota franchisees, the statute of limitations under North Dakota Law will apply."
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.
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- 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.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, there are specific exemptions to the standard limitations on claims, particularly for franchisees in North Dakota and Maryland. For North Dakota franchisees, any provisions in the franchise agreement that require consenting to a limitation of claims within one year are considered unfair and unenforceable under North Dakota Franchise Investment Law. Therefore, the statute of limitations under North Dakota law will apply, superseding the one-year limitation. This protects franchisees from being bound by an unfairly short claim period. Additionally, no statement signed by a franchisee at the start of the franchise relationship can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Deer Solution or its representatives. This ensures franchisees retain their rights to pursue legal action for misrepresentation or fraud.
For Maryland franchisees, the amendment to the Deer Solution Franchise Agreement addresses dispute resolution and limitations on claims. Specifically, any general release required for renewal, sale, assignment, or transfer of the franchise does not apply to liabilities arising under the Maryland Franchise Registration and Disclosure Law. This means that franchisees cannot be forced to release Deer Solution from liability under Maryland franchise law as a condition of these transactions. Furthermore, while the standard agreement may include arbitration clauses, Maryland franchisees retain the right to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, regardless of the arbitration requirement. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.
These amendments provide additional protections to franchisees in North Dakota and Maryland, ensuring they are not unduly restricted in their ability to pursue legal claims against Deer Solution under their respective state franchise laws. Prospective franchisees in these states should be aware of these specific exemptions and consult with legal counsel to fully understand their rights and obligations under the franchise agreement and applicable state laws.