Are there any limitations on the effectiveness of the addendum to the Punch King Fitness franchise agreement based on jurisdictional requirements?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
orce any liability created by the Minnesota Franchise Law. Any claim arising under the Minnesota Franchise Law may be brought in the state of North Dakota.
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- The parties are signing this addendum simultaneously with the Franchise Agreement to which it is attached.
PUNCH KING FITNESS, INC. BUSINESS ORGANIZATION FRANCHISEE: INDIVIDUAL FRANCHISEE: INDIVIDUAL FRANCHISEE:
RHODE ISLAND ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT
The following additional disclosures are required by the Rhode Island Franchise Investment Act:
A condition, stipulation, or provision requiring a franchise to waive compliance with or relieving a person of a duty or liability imposed by or a right provided by this act or a rule or order under this act is void.
A provision is a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this act.
RHODE ISLAND ADDENDUM TO FRANCHISE AGREEMENT
The Franchise Agreement to which this addendum is attached is amended as follows to comply with the Rhode Island Franchise Investment Act.
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- A general release requiring as a condition of renewal, assignment, or transfer shall not apply to any claim or liability arising under the Rhode Island Franchise Investment Act.
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- Any provision in the Franchise Agreement that requires the application of the laws of another state or designates jurisdiction or venue in a forum outside the State of Rhode Island is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act.
FRANCHISOR: PUNCH KING FITNESS, INC. Its: Its:
VIRGINIA ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT
The following statements are added to Item 17.h.
Under Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the development agreement do not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
WASHINGTON ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT
The following additional disclosures are required by the Washington Franchise Investment Protection Act:
The State of Washington has a statute, R.C.W. 19.100.180, which may supersede the franchise agreement in your relationship with the Franchisor, including the areas of termination and renewal of your franchise. There may also be court decisions that may supersede the franchise agreement in your relationship with the Franchisor, including the areas of termination and renewal of your franchise.
In any arbitration involving a franchise purchased in Washington, the arbitration site shall be either in the State of Washington or in a place mutually agreed upon at the time of the arbitration or as determined by the arbitrator.
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 R.C.W., shall prevail.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
According to the 2024 Punch King Fitness Franchise Disclosure Document, addenda to the franchise agreement are included to comply with specific state laws, which may limit the standard agreement's provisions. For example, the Rhode Island Addendum states that any provision in the Franchise Agreement that requires the application of the laws of another state or designates jurisdiction or venue in a forum outside the State of Rhode Island is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act. Similarly, a general release required as a condition of renewal, assignment, or transfer shall not apply to any claim or liability arising under the Rhode Island Franchise Investment Act.
The Indiana Addendum also addresses jurisdictional limitations, noting that Indiana statutes and court decisions may supersede the franchise agreement, particularly in areas of termination and renewal. It also states that any provision requiring the application of another state's laws or designating a forum outside of Indiana is void concerning claims enforceable under Indiana franchise laws. Furthermore, in case of conflict, the provisions of the Indiana Franchise Disclosure Law and the Indiana Deceptive Franchise Practices Law will prevail.
In Virginia, the addendum clarifies that if any grounds for default or termination stated in the development agreement do not constitute "reasonable cause" as defined in Virginia law, that provision may not be enforceable. In California, the addendum notes that prospective franchisees are encouraged to consult legal counsel to determine the applicability of California and federal laws to any provisions of a franchise agreement and area development agreement requires restricting venue to a forum outside the State of California. These addenda serve to modify the standard Punch King Fitness franchise agreement to align with the franchise laws of these specific states, potentially altering the rights and obligations of both the franchisor and franchisee within those jurisdictions.