Does the Desi District franchise agreement allow for any limitations on litigation brought for breach of the agreement?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- (10) Limiting litigation brought for breach of the agreement in any manner whatsoever.
The Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5, and therefore the applicable provision of the Agreement is amended to state "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues."
Any provision of the Agreement which provides for a period of limitations for causes of action shall not apply to causes of action under the Maryland Franchise Law, Business Regulation Article, §14-227, Annotated Code of Maryland. Franchisee must bring an action under such law within three years after the grant of the franchise.
Provisions such as those which unreasonably restrict or limit the statute of limitation period for claims under the Act, rights or remedies under the Act such as a right to a jury trial may not be enforceable.
Source: Item 23 — RECEIPTS (FDD pages 52–140)
What This Means (2024 FDD)
According to the 2024 Desi District Franchise Disclosure Document, the franchise agreement cannot limit litigation brought for breach of the agreement in any manner in Maryland. Specifically, any provision in the agreement that provides for a period of limitations for causes of action does not apply to causes of action under the Maryland Franchise Law. Franchisees must bring an action under Maryland Franchise Law within three years after the grant of the franchise.
The Minnesota Rider to the Franchise and Multi-Unit Development Agreement states that the Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5. Therefore, the applicable provision of the Agreement is amended to state that no action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues.
The Washington Addendum to Disclosure Document and Rider to Franchise and Multi-Unit Development Agreement states that provisions such as those which unreasonably restrict or limit the statute of limitation period for claims under the Act, rights or remedies under the Act such as a right to a jury trial may not be enforceable.