What is the legal effect of the waiver of defenses by the owners of a Bananas Smoothies Frozen Yogurt franchise?
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. §80C.21 and Minn. Rule 2860.440J prohibit us from requiring litigation to be conducted outside Minnesota. In addition, nothing in the Disclosure Document or agreement can abrogate or reduce any of your rights as provided for in Minnesota Statutes, Chapter 80C, or your rights to any procedure, forum or remedies provided for by the laws of the jurisdiction.
Under Minn. Rule 2860.4400D, we are prohibited from requiring you to sign a general release.
No statement, questionnaire, or acknowledgement 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 with the franchise.
NEW YORK
ADDENDUM TO EVERYTHING YOGURT BRANDS DISCLOSURE DOCUMENT
For franchises and franchisees subject to the New York General Business Law B Article 33, statutes and regulations, the following information supersedes or supplements, as the case may be, the corresponding disclosures in the main body of the text of the Everything Yogurt Brands, LLC New York Franchise Offering Prospectus.
- The following information is added to the cover page of the Franchise Disclosure Document:
INFORMATION COMPARING FRANCHISORS IS AVAILABLE. CALL THE STATE ADMINISTRATORS LISTED IN EXHIBIT A OR YOUR PUBLIC LIBRARY FOR SERVICES OR OF INFORMATION. REGISTRATION OF THIS FRANCHISE BY NEW YORK STATE DOES NOT MEAN THAT NEW YORK STATE RECOMMENDS IT OR HAS VERIFIED THE INFORMATION IN THIS FRANCHISE DISCLOSURE DOCUMENT. IF YOU LEARN THAT ANYTHING IN THIS FRANCHISE DISCLOSURE DOCUMENT IS UNTRUE, CONTACT THE FEDERAL TRADE COMMISSION AND THE APPROPRIATE STATE OR PROVINCIAL AUTHORITY. THE FRANCHISOR MAY, IF IT CHOOSES, NEGOTIATE WITH YOU ABOUT ITEMS COVERED IN THE FRANCHISE DISCLOSURE DOCUMENT.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 FDD, the legal effect of a waiver of defenses by owners of a Bananas Smoothies Frozen Yogurt franchise varies by jurisdiction. In Minnesota, franchisees cannot waive any rights, consent to the franchisor obtaining injunctive relief, or be required to consent to a waiver of a jury trial. Additionally, Minnesota law prohibits Bananas Smoothies Frozen Yogurt from requiring franchisees to sign a general release or requiring litigation to be conducted outside of Minnesota. No statement signed by a franchisee can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by the franchisor.
In California, the California Franchise Investment Law provides rights to the franchisee concerning termination, transfer, or non-renewal of a franchise, and the law will control if the franchise agreement contains a provision inconsistent with it. The franchise agreement's provision for termination upon bankruptcy may not be enforceable under federal bankruptcy law, and a covenant not to compete extending beyond the franchise termination may not be enforceable under California law. California law voids a waiver of rights under the Franchise Investment Law and the Franchise Relations Act if a franchisee is required to sign a general release to renew or transfer their franchise.
Furthermore, the area development agreement states that the developer waives any rights, actions, or claims under the federal act entitled "Racketeer Influence and Corrupt Organizations." The parties also agree that any legal action in connection with the agreement will be tried to the court sitting without a jury, and all parties waive any right to have any action tried by jury. These waivers and legal stipulations highlight the importance of franchisees understanding their rights and protections under both federal and state laws, as these can significantly impact their relationship with Bananas Smoothies Frozen Yogurt.