What is the exception to the general release required of a B Bops franchisee in Minnesota upon termination or transfer?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
- G. Franchisee (and each of its partners, shareholders or members if Franchisee is a partnership, corporation or limited liability company) executes a general release, in form and substance satisfactory to Company, releasing Company and its affiliates and their respective directors, officers, agents and employees from any and all claims, (except that such release shall not apply to any claims arising under Minnesota Statues Chapter 80C);
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- Section 19(C)(4) of the Agreement is hereby deleted in its entirety and replaced by the following provision:
- (4) Franchisee (and such partners, shareholders or members thereof as Company may direct) or the individual partner, shareholder or member thereof proposing to make such transfer, shall execute a general release of all claims against Company and its affiliates and their respective directors, officers, agents and employees (except to the extent that such a release is prohibited by Minnesota Statutes Chapter 80C);
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, franchisees in Minnesota are generally required to execute a release of claims against B Bops and its affiliates upon termination or transfer of the franchise agreement. However, there is a specific exception to this requirement.
The exception states that the general release shall not apply to any claims arising under Minnesota Statutes Chapter 80C. This means that while a franchisee must release B Bops from most potential claims, they retain the right to pursue claims specifically protected under Minnesota's franchise law.
This provision is important for prospective B Bops franchisees in Minnesota as it ensures that they do not waive their rights under state franchise law, even upon termination or transfer of the franchise. Minnesota Statutes Chapter 80C provides certain protections to franchisees, and this clause ensures those protections remain intact.