Does the Fly To Fit Franchise Agreement require a franchisee to consent to a limitation of claims?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
NORTH DAKOTA RIDER TO FRANCHISE AND MULTI-UNIT DEVELOPMENT AGREEMENT
This Rider amends the Franchise and Multi-Unit Development Agreement dated (the "Agreement"), between Fly To Fit Franchise, LLC, a Delaware Limited Liability Company ("Fly To Fit Franchise") and, a ("Franchisee").
- 1. Definitions. Capitalized terms used but not defined in this Rider have the meanings given in the Agreement.
- 2. Amendments. The Agreement (and any Guaranty Agreement) is amended to comply with the following:
- (1) Restrictive Covenants: Every contract by which Franchisee, any Guarantor, or any other person is restrained from exercising a lawful profession, trade, or business of any kind is subject to NDCC Section 9-08-06.
- (2) Situs of Arbitration Proceedings: Franchisee and any Guarantor are not required to agree to the arbitration of disputes at a location that is remote from the site of Franchisee's business.
- (3) Restrictions on Forum: Franchisee and any Guarantor are not required to consent to the jurisdiction of courts outside of North Dakota.
- (4) Liquidated Damages and Termination Penalties: Franchisee is not required to consent to liquidated damages or termination penalties.
- (5) Applicable Laws: The Agreement (and any Guaranty Agreement) is governed by the laws of the State of North Dakota.
- (6) Waiver of Trial by Jury: Franchisee and any Guarantor do not waive a trial by jury.
- (7) Waiver of Exemplary and Punitive Damages: The parties do not waive exemplary and punitive damages.
- (8) General Release: Franchisee and any Guarantor are not required to sign a general release upon renewal of the Agreement.
- (9) Limitation of Claims: Franchisee is not required to consent to a limitation of claims. The statute of limitations under North Dakota law applies.
- (10) Enforcement of Agreement: The prevailing party in any enforcement action is entitled to recover all costs and expenses including attorney's fees.
- 3. Effective Date. This Rider is effective as of the Effective Date.
Source: Item 23 — RECEIPTS (FDD pages 44–134)
What This Means (2024 FDD)
According to the 2024 Fly To Fit Franchise Disclosure Document, whether a franchisee is required to consent to a limitation of claims depends on the state where the franchise operates. Specifically, the North Dakota Rider to the Franchise and Multi-Unit Development Agreement states that franchisees in North Dakota are not required to consent to a limitation of claims, and the statute of limitations under North Dakota law will apply. This amendment ensures that North Dakota franchisees retain their full legal rights regarding the time frame for bringing claims against Fly To Fit.
For prospective Fly To Fit franchisees, this means that the standard franchise agreement may be modified by state-specific riders that address local laws and regulations. In North Dakota, the rider explicitly protects franchisees from being forced to agree to limitations on the time they have to file a claim. This is a significant benefit, as it ensures they have adequate time to discover and address any issues that may arise during the franchise term.
It is important for potential franchisees to carefully review any state-specific riders or addenda included with the Fly To Fit Franchise Agreement, as these can significantly alter the terms and conditions of the franchise relationship. Franchisees should pay close attention to provisions related to dispute resolution, limitations of liability, and waivers of rights, as these can impact their ability to seek legal recourse in the event of a disagreement with Fly To Fit.
Franchisees should consult with a legal professional to fully understand their rights and obligations under the Franchise Agreement and any applicable state laws. This is particularly important in states like North Dakota, where specific protections are in place to safeguard the interests of franchisees.