Can the in-term restrictive covenants for Bananas Smoothies Frozen Yogurt be waived, and if so, how?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
of their franchises. As in effect in November 1990, Minn. Stat. Ann. Sec. 80.C.14, Subd. 3, 4 and 5 require, except in certain specified cases, that a franchisee be given 90 days notice of termination (with 60 days to cure) and 180 days notice for nonrenewal of a franchise agreement.
The franchisor will protect the franchisee's right to use the trademarks, service marks, trade names, logotypes or other commercial symbols or indemnify the franchisee from any loss, costs or expenses arising out of any claim, suit or demand regarding the use of the name.
Under Minn. Rule 2860.4400J, (1) a franchisee cannot waive any rights, (2) the franchisee cannot consent to the franchisor obtaining injunctive relief, although the franchisor may seek injunctive relief, and (3) a franchisee cannot be required to consent to waiver of a jury trial. In addition, a court will determine whether a bond is required.
Minn. Stat.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
Based on the 2025 Bananas Smoothies Frozen Yogurt FDD, the in-term restrictive covenants can only be waived under specific conditions related to Minnesota law. According to the FDD, Minnesota Rule 2860.4400J states that a franchisee cannot waive any rights. This means that any agreement a franchisee makes that attempts to waive their rights is not valid under Minnesota law.
Additionally, the FDD specifies that a franchisee in Minnesota cannot consent to the franchisor obtaining injunctive relief, although the franchisor retains the right to seek such relief. The determination of whether a bond is required in such cases will be made by a court. Furthermore, the FDD states that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or their representatives.
For prospective franchisees, especially those in Minnesota, this means that certain protections are in place that cannot be waived, regardless of any agreements made. This ensures that franchisees retain their rights and protections under state law, preventing them from inadvertently relinquishing these rights during the franchise relationship. Franchisees outside of Minnesota may not have these protections.