What is the effect of Minnesota Rule Part 2860.4400J on the B Bops franchise agreement?
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.
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IN WITNESS WHEREOF, the parties to the Agreement have executed this Addendum as of the date set forth below.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, Minnesota Statutes Section 80C.21 and Minnesota Rule Part 2860.4400J ensure that the franchise agreement does not diminish any rights granted to the franchisee under Minnesota Statutes, Chapter 80C. This protection is explicitly stated to apply to Section 35 of the agreement. This means that even if specific terms in the franchise agreement seem to limit a franchisee's rights under Minnesota franchise law, those terms will be interpreted in a way that preserves the franchisee's statutory rights.
Specifically, the B Bops franchise agreement is amended to include a new Section 44, which provides an additional acknowledgment. This section clarifies that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including claims of fraud in the inducement. It also prevents franchisees from disclaiming reliance on statements made by B Bops or anyone acting on its behalf. This provision overrides any conflicting terms in other documents related to the franchise agreement.
Furthermore, certain sections of the B Bops franchise agreement that involve the franchisee releasing claims against B Bops are modified. Specifically, sections 18(G) and 19(C)(4) are amended to state that the release does not apply to any claims arising under Minnesota Statutes Chapter 80C. This ensures that even when a franchisee signs a general release, their rights under Minnesota franchise law are protected. This set of stipulations provides significant protection for B Bops franchisees operating in Minnesota, ensuring that their rights under state law are not compromised by the franchise agreement.