factual

Does Minnesota rules prohibit All Team from requiring a franchisee to assent to a general release?

All_Team Franchise · 2025 FDD

Answer from 2025 FDD Document

EXHIBIT II

STATE LAW ADDENDA

MINNESOTA STATE LAW ADDENDUM

Notwithstanding anything contained in the foregoing Franchise Agreement and Franchise Disclosure Document ("FDD") to the contrary, the following provisions of the Minnesota Franchise Act shall apply to any franchise or franchisee located in the State of Minnesota, which shall control to the extent of any inconsistency:

MINNESOTA RULES 2860.4400(D) prohibits a franchisor from requiring a franchisee to assent to a general release.

Source: Item 23 — RECEIPT (FDD pages 34–161)

What This Means (2025 FDD)

According to All Team's 2025 Franchise Disclosure Document, Minnesota Rules prohibit All Team from requiring a franchisee to agree to a general release. This protection is specifically outlined in the Minnesota State Law Addendum within the FDD. This means that All Team franchisees in Minnesota cannot be forced to sign away their rights to pursue legal claims against the company as a condition of their franchise agreement. This ensures that franchisees retain legal recourse should disputes arise.

This provision is designed to protect franchisees from potentially overreaching franchisor demands. The Minnesota Franchise Act ensures that franchisees maintain certain rights and remedies under the law, preventing franchisors from using contractual terms to limit these rights. This addendum emphasizes that no part of the Franchise Disclosure Document or any related agreements can diminish the rights provided to franchisees under Minnesota law.

For a prospective All Team franchisee in Minnesota, this is a significant safeguard. It means that even if the standard franchise agreement contains language that could be interpreted as a general release, that language will not be enforceable in Minnesota. Franchisees should still carefully review all documents and seek legal counsel to fully understand their rights and obligations, but this addendum provides an additional layer of protection under Minnesota state law.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.