What is the effect of Minnesota Statutes § 80C.21 on the Bath Tune Up franchise agreement?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the franchise is granted.
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 in connection with the franchise.
Minnesota
The franchise agreement requires binding arbitration. The arbitration will occur in a state other than Minnesota, with costs being borne by the non-prevailing party. Under Minnesota Statutes § 80C.21 and Minnesota Rule Part 2860.4400J, this provision may not in any way invalidate or reduce any of the franchise owner's rights that are listed in Chapter 80C of the Minnesota Statutes.
Source: Item 23 — RECEIPTS (FDD pages 52–222)
What This Means (2025 FDD)
According to the 2025 FDD, Minnesota Statutes § 80C.21 impacts several provisions within the Bath Tune Up franchise agreement for franchisees operating in Minnesota. Specifically, the FDD states that if the franchise agreement mandates binding arbitration outside of Minnesota, with costs potentially borne by the franchisee, this provision cannot diminish any rights granted to the franchisee under Chapter 80C of the Minnesota Statutes. This ensures that franchisees retain their statutory rights regardless of the arbitration clause.
Similarly, if the Bath Tune Up franchise agreement stipulates that the laws of a state other than Minnesota govern the agreement, Minnesota Statutes § 80C.21 ensures that this stipulation does not invalidate or reduce any of the franchisee's rights as outlined in Chapter 80C of the Minnesota Statutes. This provision aims to protect Minnesota franchisees from potentially unfavorable legal conditions imposed by out-of-state laws.
Furthermore, Minnesota Rule 2860.4400J prohibits Bath Tune Up from requiring a franchisee to sign a release of claims arising under the Minnesota Franchise Law as a condition of renewing or transferring a franchise. Therefore, any release required by Bath Tune Up must explicitly exclude claims related to Minnesota Franchise Law, ensuring franchisees do not inadvertently waive their legal rights under state law.