What restrictions on statute of limitations periods may not be enforceable for Degree Wellness franchisees?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (v) Any limitation on claims period must comply with Minnesota Statute 80C.17 Subd. 5. As such, Section 17.10 of the Franchise Agreement are revised to change the limitation of claims period from two (2) years to three (3) years.
- (vi) 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 with the franchise.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, specifically the New York State Addendum, there are certain limitations on claims periods that must comply with Minnesota Statute 80C.17 Subd. 5. As such, Section 17.10 of the Franchise Agreement is revised to change the limitation of claims period from two (2) years to three (3) years. This means that for franchisees, particularly those in Minnesota or dealing with issues governed by Minnesota law, the standard two-year limitation on bringing claims against Degree Wellness is extended to three years. This provides franchisees with additional time to discover and pursue potential legal claims.
Additionally, the New York State Addendum states that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Degree Wellness or its representatives. This protects franchisees from inadvertently giving up their legal rights through standard paperwork at the start of the franchise relationship. This provision supersedes any other term of any document executed with the franchise.
These stipulations ensure that Degree Wellness franchisees retain their rights under state franchise laws and have an adequate period to bring claims, regardless of what other documents might suggest. This is particularly relevant in states with strong franchise protection laws, as it prevents Degree Wellness from circumventing those protections through contractual terms. Prospective franchisees should be aware of these protections and consult with legal counsel to understand their rights fully.