If there is an inconsistency between the standard Beehive Homes Franchise Agreement and the Minnesota amendment, which controls for franchises located in Minnesota?
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, the Minnesota Amendment to the Franchise Agreement takes precedence over the standard agreement for franchises located in Minnesota, but only to the extent of any inconsistency. This means that if there is a conflict between a provision in the standard Beehive Homes Franchise Agreement and a provision in the Minnesota Amendment, the Minnesota Amendment will govern.
The Minnesota Amendment specifically addresses certain areas where Minnesota law differs from the standard Beehive Homes agreement. These areas include NSF checks, standards of conduct, and waivers of claims. For example, the amendment states that NSF checks and related fees are governed by Minnesota Statute §604.113, which caps initial service charges at $30 and requires notice and an opportunity to cure before assessing interest and attorneys' fees.
However, it's important to note that the Minnesota Amendment only modifies the Franchise Agreement to the extent of any inconsistency. All other terms and provisions of the standard Franchise Agreement remain in full force and effect. This ensures that the core elements of the Beehive Homes franchise relationship are maintained while complying with Minnesota law.