Does Fly To Fit permit limitations on litigation brought for breach of the franchise agreement?
Fly_To_Fit Franchise · 2024 FDDAnswer 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 44–134)
What This Means (2024 FDD)
According to the 2024 Fly To Fit Franchise Disclosure Document, the franchise agreement's approach to limitations on claims varies by state. For instance, the Minnesota Rider states that the Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5, amending the agreement to specify 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 in Minnesota, franchisees have a three-year statute of limitations for actions under that specific statute.
In contrast, the North Dakota Rider explicitly states that franchisees are not required to consent to a limitation of claims, and the statute of limitations under North Dakota law applies. Similarly, the Illinois Rider specifies a three-year limitation from the act or transaction constituting the violation, one year after awareness of a potential claim, or 90 days after written notice of the violation, whichever expires first, for actions maintained to enforce any liability created by the Illinois Act.
These state-specific addenda indicate that Fly To Fit tailors its franchise agreement to comply with local laws regarding limitations on claims. Prospective franchisees should carefully review the rider applicable to their state to understand the specific limitations on litigation and how local laws may affect their rights. It is advisable to consult with an attorney to fully understand these provisions and their implications.