Can the Bang Cookies Disclosure Document or Franchise Agreement reduce a franchisee's rights under Minnesota Statutes, Chapter 80C?

According to Bang Cookies's 2024 Franchise Disclosure Document, the franchise agreement cannot reduce a franchisee's rights as provided for in Minnesota Statutes, Chapter 80C. The document explicitly states that nothing within the Disclosure Document or Franchise Agreement can override or diminish any rights granted to the franchisee under Minnesota Statutes, Chapter 80C, or their rights to procedures, forums, or remedies provided by the laws of the jurisdiction. This provision ensures that Minnesota franchisees retain all protections afforded to them under Minnesota law.

Specifically, the Bang Cookies Franchise Agreement is amended to ensure compliance with Minnesota Statutes, Chapter 80C, and Minnesota Franchise Rules, Chapter 2860. This is reinforced in Article 14.C and Article 15.B of the Franchise Agreement, which address conditions for approval of transfer and conditions for renewal, respectively. These articles are supplemented to ensure that all rights and causes of action arising in the franchisee's favor under the Minnesota Franchise Act (Minn. Stat. Section 80C.14 et seq.) and Minnesota Rules 2860.4400(D) remain in effect. The intent is to satisfy the non-waiver provisions of Minnesota Rules 2860.4400(D).

Furthermore, the amendment addresses specific items within the FDD to align with Minnesota law. For instance, Item 6 regarding "Other Fees" is clarified to state that non-sufficient funds are governed by Minnesota Statute 604.113, which caps service charges at $30. Item 13 concerning "Trademarks" is supplemented to reflect the requirement under the Minnesota Franchise Act (Minn. Stat. Sec. 80C.12(g)) that Bang Cookies will reimburse franchisees for costs incurred in defending their right to use the marks, provided the marks were used as authorized and Bang Cookies is timely notified and given control over the defense. Item 17, which covers "Renewal, Termination, Transfer and Dispute Resolution," is also supplemented to comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4, and 5, requiring specific notice periods for termination and non-renewal, and to ensure that the agreement does not include prospective general releases of claims against Bang Cookies that may be subject to Minnesota Franchise Law, as prohibited by Minn. Rule 2860.4400D.

These amendments collectively ensure that the Bang Cookies franchise agreement adheres to Minnesota law and protects the rights of franchisees operating in Minnesota.