What specific Minnesota statutes does 360 Painting comply with regarding termination and nonrenewal of franchise agreements?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
he Franchise Agreement, and that consent to the transfer of the franchise will not be unreasonably withheld.
Minnesota Rule 2860.4400D prohibits a franchisor from requiring a franchisee to assent to a general release, assignment, novation, or waiver that would relieve any person from liability imposed by Minnesota Statute §§80C.01 – 80C.22.
The limitations of claims section must comply with Minn. Stat. Sec. 80C.17, subd. 5.
You cannot consent to us obtaining injunctive relief. We may seek injunctive relief. (Minnesota Rule 2860.4400J). Also, a court will determine if a bond is required.
AMENDMENT TO 360 PAINTING, LLC FRANCHISE AGREEMENT FOR THE STATE OF MINNESOTA
| ("Franchisee" or "you") and 360 Painting, LLC ("Franchisor"), dated | (the |
|---|---|
| "Franchise Agreement") shall be amended by the addition of the following language, which should be | |
| considered an integral part of the Franchise Agreement (the "Amendment"). |
Minnesota Law Modification
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- This Amendment is made a part of the Franchise Agreement.
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- Section 3.2 of the Franchise Agreement is hereby amended by adding the following:
With respect to franchises governed by Minnesota law, the Franchisor will comply with Minn. Stat. Sec. 80C.14, Subd. 4, which requires, except in certain specified cases, that a franchisee be given one hundred eighty (180) days' notice for non-renewal of the Franchise Agreement.
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- Sections 3.2(ix) and 17.4(iii) of the Franchise Agreement each contain a provision requiring a general release as a condition of renewal or transfer of the franchise. Such release will exclude claims arising under Minnesota Statutes 80C.01 through 80C.22.
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to the 2025 FDD, 360 Painting in Minnesota is subject to the Minnesota Franchise Act, Minn. Stat. §§80C.01 – 80C.22. Several specific rules and statutes are called out for compliance.
Specifically, Minnesota Rule 2860.4400D prevents 360 Painting from forcing a franchisee to agree to a general release that would relieve anyone from liability under Minnesota Statute §§80C.01 – 80C.22. The limitations of claims section must comply with Minn. Stat. Sec. 80C.17, subd. 5. Additionally, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prevent 360 Painting from requiring litigation to occur outside of Minnesota, forcing a franchisee to waive a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties, or judgment notes.
These statutes and rules ensure that Minnesota franchisees retain their rights and protections under Minnesota law, preventing 360 Painting from imposing unfair or restrictive terms in the franchise agreement. Franchisees should be aware of these protections and consult with legal counsel to fully understand their rights under Minnesota law.