Does the Beehive Homes Franchise Disclosure Document or agreement(s) abrogate or reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Franchise Disclosure Document or agreement(s) can abrogate or reduce (1) any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C or (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
-
- With respect to franchises governed by Minnesota law, the franchisor will comply with Minnesota Statutes, Section 80C.14, Subd. 3-5, which require (except in certain specified cases) (1) that a franchisee be given 90 days notice of termination (with 60 days to cure) and 180 days notice for non-renewal of the franchise agreement and (2) that consent to the transfer of the franchise will not be unreasonably withheld.
-
- The franchisor will protect the franchisee's rights 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. Minnesota considers it unfair to not protect the franchisee's right to use the trademarks. Refer to Minnesota Statues, Section 80C.12, Subd. 1(g).
-
- Minnesota Rules 2860.4400(D) prohibits a franchisor from requiring a franchisee to assent to a general release.
-
- The franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400J. Also, a court will determine if a bond is required.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, the franchise agreement and related documents do not diminish a franchisee's rights under Minnesota Statutes, Chapter 80C. Specifically, the FDD states that nothing within the disclosure document or agreements can override or lessen any rights granted to franchisees by Minnesota Statutes, Chapter 80C, or their entitlement to procedures, forums, or remedies provided by the laws of the jurisdiction. This ensures that Minnesota franchisees retain all protections afforded to them under state law.
Beehive Homes also commits to complying with specific provisions of Minnesota Statutes, Section 80C.14, Subd. 3-5, which mandate that franchisees receive a minimum of 90 days' notice for termination (with 60 days to cure the issue) and 180 days' notice for non-renewal of the franchise agreement. Furthermore, Beehive Homes cannot unreasonably withhold consent for the transfer of a franchise, providing additional security and flexibility for franchisees. The disclosure also emphasizes the protection of a franchisee's right to use trademarks, service marks, and trade names, ensuring Beehive Homes will defend the franchisee's right to use these marks and indemnify them against any related claims, lawsuits, or demands.
Additionally, the 2025 Beehive Homes FDD acknowledges certain prohibitions under Minnesota Rules 2860.4400(D) and 2860.4400J, preventing Beehive Homes from requiring franchisees to agree to a general release or preventing the franchisee from consenting to Beehive Homes obtaining injunctive relief. The franchisor may seek injunctive relief, but a court will determine if a bond is required. These stipulations further safeguard the franchisee's legal standing and rights within the franchise relationship under Minnesota law.
Finally, the Minnesota Amendment to the Franchise Agreement addresses NSF checks, standards of conduct, and waivers. It caps initial service charges for NSF checks at $30, requires notice and an opportunity to cure before assessing interest and attorney's fees, and prohibits unreasonable standards of conduct imposed on franchisees. Furthermore, no statement or acknowledgment signed by a franchisee can waive claims under state franchise law or disclaim reliance on statements made by Beehive Homes or its representatives. These amendments ensure that the Beehive Homes franchise agreement adheres to Minnesota law, providing additional protections for franchisees operating in the state.