What is the effect of adding Section 44 to the B Bops Franchise Agreement in Minnesota?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Pursuant to Minnesota Statutes Section 80C.21 and Minnesota Rule Part 2860.4400J, this Section shall not in any way abrogate or reduce any rights of Franchisee as provided for in Minnesota Statutes, Chapter 80C.
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- The Agreement is hereby amended by addition of the following provision as a new Section 44 immediately following the end of Section 43:
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- ADDITIONAL ACKNOWLEDGMENT. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 B Bops Franchise Disclosure Document, adding Section 44 to the franchise agreement for franchisees in Minnesota provides additional protection under Minnesota state franchise law. Specifically, it ensures that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims related to state franchise law, including claims of fraud in the inducement.
Section 44 also clarifies that franchisees cannot disclaim reliance on statements made by B Bops, franchise sellers, or anyone acting on behalf of B Bops. This means that franchisees in Minnesota retain their rights to pursue claims based on misrepresentations or fraudulent statements made during the franchise sales process, regardless of any agreements to the contrary.
This provision is designed to protect franchisees from unknowingly waiving their legal rights or being bound by disclaimers that could prevent them from seeking legal recourse if they believe they were misled. Section 44 supersedes any other conflicting terms in any document executed in connection with the franchise agreement, reinforcing its importance in safeguarding franchisee rights under Minnesota law.