factual

Does Minnesota law bar the voluntary settlement of disputes between Amerispec Inspection Services and its franchisees?

Amerispec_Inspection_Services Franchise · 2025 FDD

Answer from 2025 FDD Document

Minnesota Statutes § 80C.21 and Minnesota Rule 2860.4400D provide that a Franchisee cannot be required to assent to a release, assignment, novation or waiver that would relieve any person from liability imposed by Minnesota Statutes 1973 Supplement, sections 80C.01 to 80C.22; provided, however, that these laws do not bar the voluntary settlement of disputes.

Minn. Rules 2860.4400J permits a franchisor to seek injunctive relief; however, a franchisee cannot consent to the franchisor obtaining injunctive relief. A Court will determine if a bond is required.

Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5.

Source: Item 23 — Receipts (FDD pages 47–172)

What This Means (2025 FDD)

According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, Minnesota law does not prevent the voluntary settlement of disputes between the franchisor and its franchisees. Specifically, Minnesota Statutes § 80C.21 and Minnesota Rule 2860.4400D state that while a franchisee cannot be forced to sign a release, assignment, novation, or waiver relieving liability under Minnesota Statutes 1973 Supplement, sections 80C.01 to 80C.22, these laws do not prohibit voluntary settlements. This means that Amerispec Inspection Services and its franchisees can still come to an agreement to resolve disputes outside of court if both parties willingly agree.

However, Minn. Rules 2860.4400J clarifies that while Amerispec Inspection Services can seek injunctive relief, a franchisee cannot consent beforehand to the franchisor obtaining such relief. The court will determine if a bond is required in such cases. Additionally, any limitations of claims must comply with Minnesota Statutes, Section 80C.17, Subd. 5. These regulations ensure that franchisees retain certain rights and protections under Minnesota law, even within the context of franchise agreements.

Furthermore, the addendum to the franchise agreement for Minnesota emphasizes compliance with Minnesota statutes and regulations. It amends specific items of the franchise agreement to reflect these legal requirements. For instance, NSF check service charges are capped at $30 according to Minn. Stat. 604.113, and Amerispec Inspection Services is obligated to protect the franchisee's right to use trademarks and indemnify them from related claims. These provisions collectively aim to balance the franchisor's and franchisee's rights while adhering to Minnesota 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.