Is All Team prohibited from requiring a franchisee to assent to a general release in Minnesota?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
MINNESOTA RULES 2860.4400(D) prohibits a franchisor from requiring a franchisee to assent to a general release.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if a franchise is located in Minnesota, All Team is prohibited from requiring a franchisee to assent to a general release. Specifically, Minnesota Rules 2860.4400(D) explicitly prohibits All Team from mandating that a franchisee agree to a general release. This protection is part of the Minnesota Franchise Act, which takes precedence over any conflicting terms in the franchise agreement or the FDD itself.
This means that All Team franchisees in Minnesota cannot be forced to sign a document releasing All Team from all potential liabilities as a condition of their franchise agreement. This provides an additional layer of protection for franchisees, ensuring they retain their legal rights and recourse against the franchisor.
This stipulation is important for prospective franchisees in Minnesota to understand, as it prevents All Team from using a general release to shield itself from potential legal claims. Franchisees should be aware of this protection and consult with legal counsel to fully understand their rights under Minnesota law.