Is Belocal allowed to require a franchisee to assent to a general release from liability imposed by Minnesota Statutes, Section 80C.01 to 80C.22?

According to Belocal's 2025 Franchise Disclosure Document, Minnesota Rule 2860.4400(D) explicitly prohibits Belocal from requiring a franchisee to agree to a general release from liability as it pertains to Minnesota Statutes, Section 80C.01 to 80C.22. However, this rule does not prevent the voluntary settlement of disputes. This means that while Belocal cannot mandate a franchisee to sign a blanket release of liability related to the specified Minnesota statutes, both parties can still come to a voluntary agreement to settle any disputes.

This protection is significant for prospective Belocal franchisees in Minnesota. It ensures that they cannot be forced to waive their rights under Minnesota franchise law. However, franchisees should be aware that this protection does not extend to voluntary settlements, so they should seek legal counsel before agreeing to any settlement.

It is common for franchise agreements to include clauses that aim to limit the franchisor's liability. However, state franchise laws often include provisions to protect franchisees from overreaching terms. The Minnesota rule cited in Belocal's FDD is an example of such a protective measure. This type of clause is designed to balance the power dynamic between franchisors and franchisees, ensuring that franchisees are not forced to give up their legal rights as a condition of entering into or maintaining the franchise agreement.