factual

Does Desi District require franchisees to consent to a limitation of claims in the franchise agreement?

Desi_District Franchise · 2024 FDD

Answer from 2024 FDD Document

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."

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 includes a limitation of claims section that must comply with Minnesota Statutes, Section 80C.17, Subd. 5. Therefore, 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."

This means that for franchisees in Minnesota, any legal action related to Minnesota Statutes, Section 80C.17 must be initiated within three years of when the cause of action arises. This is a specific legal requirement for Minnesota and is incorporated into the franchise agreement through an amendment.

Additionally, the FDD includes riders for New York, Maryland, North Dakota, Rhode Island, and Washington that address waivers, governing law, and other stipulations that may supersede the franchise agreement in those states. For example, the New York rider states that franchisees are not required to assent to a release or waiver of liability. The Washington addendum indicates that state law may supersede the franchise agreement regarding termination and renewal. These riders modify the standard franchise agreement to comply with specific state laws and protect franchisees' rights in those states.

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.