Are there any restrictions on limiting the right to a jury trial for Eos Worldwide franchisees?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the Puerto Rico Dealers Act known as Law 75, the Franchise Agreement for EOS Worldwide Franchising, LLC is amended as follows:
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- Limitations of Claims. Provisions such as those that unreasonably restrict or limit the statute of limitations period for claims under Law 75, or which unreasonably restrict other rights or remedies available to a franchisee under Law 75, such as a waiver of the right to a jury trial may not be enforceable.
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- North Dakota has determined that (i) requiring a franchisee to sign a general release upon renewal of the Franchise Agreement; (ii) requiring a franchisee to consent to a waiver of trial by jury; and (iii) requiring the franchisee to consent to a waiver of exemplary and punitive damages are unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. Accordingly, (i) all references to the Franchisee signing a general release upon renewal of the Franchise Agreement; (ii) all references to the Franchisee requiring waiver of a jury trial; and (iii) all references requiring the franchisee to consent to a waiver of exemplary and punitive damages are deleted.
In addition, nothing in the Disclosure Document or Franchise Agreement can abrogate or reduce (1) any of Franchisee's rights as provided for in Minnesota Statutes, Chapter
Source: Item 22 — CONTRACTS (FDD page 74)
What This Means (2025 FDD)
According to the 2025 FDD, the Eos Worldwide Franchise Agreement has some restrictions regarding the waiver of a jury trial, depending on the franchisee's location. For franchisees in North Dakota, the FDD states that North Dakota has determined that requiring a franchisee to consent to a waiver of trial by jury is considered unfair, unjust, and inequitable. Therefore, all references to the franchisee requiring a waiver of a jury trial are deleted from the franchise agreement for North Dakota franchisees. For franchisees in Puerto Rico, provisions that unreasonably restrict rights or remedies available to a franchisee, such as a waiver of the right to a jury trial, may not be enforceable.
For Minnesota franchisees, the FDD states that nothing in the Disclosure Document or Franchise Agreement can reduce a franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. This implies that if the right to a jury trial is protected by Minnesota law, it cannot be waived or reduced by the franchise agreement.
These stipulations mean that prospective Eos Worldwide franchisees need to be aware of the specific state laws that govern their franchise agreement, as these laws can modify or invalidate certain clauses within the agreement. It is important to consult with a legal professional to understand the full scope of their rights and obligations in their specific state.