What is the geographic scope of the Minnesota statutes and rules mentioned in relation to the Beauty Bungalows franchise?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
MINNESOTA
Despite anything to the contrary in the Franchise Agreement, the following provisions will supersede and apply to all Franchises offered and sold in the State of Minnesota:
Any provision in the Franchise Agreement which would require you to assent to a release, assignment, novation or waiver that would relieve any person from liability imposed by Minnesota Statutes, Sections 80C.01 to 80C.22 will be void to the extent that such contractual provision violates such law.
Minnesota Statute Section 80C.21 and Minnesota Rule 2860.4400J prohibit the franchisor from requiring litigation to be conducted outside of Minnesota.
In addition, nothing in the FDD or Franchise 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 Minnesota.
Minn.
Rule Part 2860.4400J prohibits a franchisee from waiving his rights to a jury trial or waiving his rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction, or consenting to liquidated damages, termination penalties or judgment notes.
Any provision in the Franchise Agreement which would require you to waive your rights to any procedure, forum or remedies provided for by the laws of the State of Minnesota is deleted from any agreement relating to Franchises offered and sold in the State of Minnesota; provided, however, that this paragraph will not affect the obligation in the Franchise Agreement relating to arbitration.
With respect to Franchises governed by Minnesota law, we will comply with Minnesota Statute Section 80C.14, Subds. 3, 4 and 5, which require, except in certain specified cases, that you be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the Franchise Agreement; and that consent to the transfer of the Franchise will not be unreasonably withheld.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the Minnesota statutes and rules discussed apply specifically to all Beauty Bungalows franchises offered and sold within the State of Minnesota.
Several provisions within the standard franchise agreement are superseded by Minnesota law for franchises operating in that state. These include stipulations that might require a franchisee to waive rights or relieve any person from liabilities imposed by Minnesota Statutes, Sections 80C.01 to 80C.22. Additionally, Minnesota Statute Section 80C.21 and Minnesota Rule 2860.4400J, which prohibit requiring litigation to occur outside of Minnesota, take precedence. The FDD also clarifies that nothing within it or the Franchise Agreement can diminish a franchisee's rights as provided by Minnesota Statutes, Chapter 80C, or their access to procedures, forums, or remedies under Minnesota law.
Furthermore, Minnesota Rule Part 2860.4400J disallows franchisees from waiving their right to a jury trial, rights to procedures, forums, or remedies provided by Minnesota laws, or consenting to liquidated damages, termination penalties, or judgment notes. The agreement also states that Beauty Bungalows will comply with Minnesota Statute Section 80C.14, Subds. 3, 4, and 5, regarding termination and non-renewal notices, as well as consent to franchise transfers, for franchises governed by Minnesota law.