When transferring a B Bops franchise in Minnesota, what claims are NOT released by the franchisee?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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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, when transferring a franchise in Minnesota, the franchisee is required to execute a general release of claims against B Bops and its affiliates. However, this release does not apply to claims arising under Minnesota Statutes Chapter 80C. This means that while the franchisee generally releases B Bops from most potential legal claims upon transfer, they retain any rights or claims specifically protected under Minnesota's franchise laws.
Minnesota Statutes Chapter 80C, also known as the Minnesota Franchise Act, provides certain protections to franchisees operating within the state. These protections often relate to fair practices, disclosure requirements, and the overall franchisor-franchisee relationship. By explicitly excluding claims arising under Chapter 80C from the general release, B Bops acknowledges and respects the statutory rights granted to franchisees under Minnesota law.
For a prospective B Bops franchisee in Minnesota, this is a notable benefit. It ensures that even when transferring the franchise, they do not forfeit their ability to pursue legal action against B Bops if the basis of the claim falls under the protections provided by Minnesota Statutes Chapter 80C. This provision offers an additional layer of security and legal recourse, safeguarding the franchisee's interests in specific situations governed by state franchise law.