Does the Minnesota amendment to the Beehive Homes franchise agreement supersede other terms in documents executed in connection with the franchise regarding disclaiming reliance on statements?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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:
- 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.
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 addresses the issue of disclaiming reliance on statements. For any Beehive Homes franchise located in Minnesota, a specific provision within the Minnesota Department of Commerce regulations takes precedence over any conflicting terms in the franchise agreement or Franchise Disclosure Document.
Specifically, the Minnesota amendment states that no statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship can waive claims under state franchise law, including fraud in the inducement. More importantly, it explicitly prohibits disclaiming reliance on any statement made by Beehive Homes, its franchise sellers, or anyone acting on their behalf. This clause is designed to protect franchisees from being bound by disclaimers that could prevent them from pursuing legal action based on misrepresentations.
The FDD clearly states that this provision supersedes any other term in any document related to the franchise. This means that if any other part of the franchise agreement or related documents attempts to limit a franchisee's ability to rely on statements made by Beehive Homes, that term is invalid in Minnesota. This offers significant protection to franchisees in Minnesota, ensuring they can hold Beehive Homes accountable for the accuracy of their representations.
This type of amendment is common in franchise agreements to comply with state-specific franchise laws, which vary considerably. Prospective Beehive Homes franchisees in Minnesota should carefully review this amendment with legal counsel to fully understand their rights and protections under Minnesota law.