In Minnesota, can a Beehive Homes franchisee disclaim reliance on statements made by the franchisor or its representatives in connection with the franchise relationship?
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, Minnesota law impacts the franchise agreement. Specifically, for Beehive Homes franchises located in Minnesota, franchisees cannot sign any document that disclaims reliance on statements made by Beehive Homes or anyone acting on their behalf. This protection extends to statements made by the franchisor, franchise sellers, or other representatives of Beehive Homes. This applies to statements made during the commencement of the franchise relationship.
This provision is significant for prospective Beehive Homes franchisees in Minnesota because it prevents them from inadvertently waiving their right to pursue legal claims based on misrepresentations or false statements made by the franchisor. This protection is particularly relevant in cases of alleged fraud in the inducement, where a franchisee claims they were misled into entering the franchise agreement. The Minnesota addendum ensures that franchisees can hold Beehive Homes accountable for the accuracy of the information provided during the franchise sales process.
This protection supersedes any conflicting terms in the franchise agreement or other related documents. This means that even if a document contains language suggesting a franchisee is waiving their right to rely on the franchisor's statements, the Minnesota law will take precedence. This ensures that Minnesota franchisees retain their legal rights and recourse in case of disputes with Beehive Homes. This is more protective than in many states, where such disclaimers may be enforceable.