Besides the specific modifications outlined in the Minnesota amendment, do all other terms of the Beehive Homes Franchise Agreement remain in effect?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
MINNESOTA AMENDMENT TO FRANCHISE AGREEMENT
Notwithstanding anything contained in the foregoing Franchise Agreement and Franchise Disclosure Document to the contrary, the following provisions of the Minnesota Department of Commerce shall apply to any franchise located in the State of Minnesota, which shall control to the extent of any inconsistency:
- a. NSF checks and related interest and attorney's' fees are governed by Minnesota Statute §604.113, which puts a cap of $30 on initial service charges and requires notice and opportunity to cure prior to assessing interest and attorneys' fees.
- b. Minnesota Rules 2860.4400(G) prohibits a franchisor from imposing on a franchisee by contract or rule, whether written or oral, any standard of conduct that is unreasonable.
- c. No statement, questionnaire, or acknowledgment 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 this franchise.
- d. Other Provisions Unaffected: All other terms and provisions contained in the Franchise Agreement shall remain in full force and effect, ex
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, for franchises located in Minnesota, all other terms and provisions contained in the Franchise Agreement remain in full force and effect, except to the extent specifically modified by the Minnesota amendment. This means that while certain aspects of the agreement are adjusted to comply with Minnesota law, the rest of the agreement stands as written. These specific modifications include stipulations regarding NSF checks, franchisor conduct standards, and waivers of claims.
For a prospective Beehive Homes franchisee in Minnesota, this is important because it clarifies which parts of the standard franchise agreement are superseded by state-specific regulations. The Minnesota amendment ensures that the franchise agreement adheres to Minnesota law, particularly concerning financial and legal protections for the franchisee. This offers a degree of security, knowing that certain clauses cannot be unreasonably enforced against them.
It is essential for potential franchisees to carefully review both the standard Franchise Agreement and the Minnesota amendment to fully understand their rights and obligations. They should pay close attention to the sections addressing NSF checks, standards of conduct, and waivers, as these are the areas where Minnesota law takes precedence. Understanding these modifications is crucial for operating a Beehive Homes franchise in compliance with state regulations and protecting their interests as a franchisee.