What is the maximum service charge Beehive Homes can charge for a NSF check 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
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to Beehive Homes' 2025 Franchise Disclosure Document, there are specific regulations regarding NSF (non-sufficient funds) check fees for franchises operating in Minnesota. The Minnesota Amendment to the Franchise Agreement states that NSF checks and related fees are governed by Minnesota Statute §604.113. This statute puts a cap of $30 on initial service charges for NSF checks.
This means that if a Beehive Homes franchisee in Minnesota receives a check that bounces, the maximum amount they can initially charge as a service fee is $30. The amendment also specifies that before assessing any interest and attorney's fees related to the NSF check, the franchisee must provide notice and an opportunity for the payer to cure the issue. This requirement protects the payer from immediately incurring additional costs beyond the initial service charge.
This provision is important for prospective Beehive Homes franchisees in Minnesota because it clarifies the limitations on fees they can charge for NSF checks, ensuring compliance with state law. It also highlights the importance of following proper procedures, such as providing notice and an opportunity to cure, before pursuing further legal remedies or charging additional fees. This helps maintain fair and transparent business practices within the Beehive Homes franchise system in Minnesota.