What specific sections of the Apricot Lane Franchise Agreement are amended regarding releases required for renewal and/or assignment/transfer in Minnesota?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
The following shall be added to the end of Section 3.B.10 and 20.C.7 of the Franchise Agreement:
- ; however, any release required as a condition of renewal and/or assignment/transfer will not apply to the extent prohibited by the Minnesota Franchises Law.
Any release as a condition of renewal and/or assignment/transfer will not apply to the extent prohibited by applicable law for claims arising under Minn. Rule 2860.4400D.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane FDD, several sections of the franchise agreement are amended for franchises governed by Minnesota law concerning releases required for renewal and/or assignment/transfer. Specifically, the addendum to the Country Visions, Inc. Franchise Agreement states that the following shall be added to the end of Section 3.B.10 and 20.C.7 of the Franchise Agreement: "; however, any release required as a condition of renewal and/or assignment/transfer will not apply to the extent prohibited by the Minnesota Franchises Law."
This amendment ensures that any release a franchisee is asked to sign as a condition of renewing their franchise agreement or transferring it to another party will not be enforceable if it violates Minnesota's franchise laws. This provision is designed to protect the franchisee's rights under Minnesota law, preventing Apricot Lane from imposing overly restrictive release terms.
Additionally, the FDD states that Minnesota Statute §80C.21 and Minnesota Rule 2860.4400J prohibit Apricot Lane from requiring litigation to be conducted outside Minnesota in certain cases. These provisions also ensure that no condition, stipulation, or provision in the franchise agreement can reduce any rights the franchisee has under Minnesota Franchise Law. Any release as a condition of renewal and/or assignment/transfer will not apply to the extent prohibited by applicable law for claims arising under Minn. Rule 2860.4400D.
These stipulations provide significant protection for Apricot Lane franchisees in Minnesota, ensuring that their rights under state law are upheld during the renewal or transfer of their franchise. Prospective franchisees should carefully review these amendments and understand their implications before signing the franchise agreement.