Does the Belocal franchise agreement in Minnesota reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, nothing in the franchise disclosure document or Agreement can abrogate or reduce any of your rights as provided for in Minnesota Statutes, Chapter 80C, including your rights to any procedure, forum, or remedies provided for in such statute.
To the extent required by Minnesota law, the Agreement and/or franchise disclosure document is hereby amended to delete all references to liquidated damages in violation of Minnesota law; provided, that no such deletion will excuse Franchisee from liability for actual or other damages, and the formula for liquidated damages in the Agreement/and or franchise disclosure document will be admissible as evidence of actual damages.
To the extent required by Minnesota law, the Agreement and/or franchise disclosure document is amended to delete all references to a waiver of jury trial.
All sections of the Agreement/and or franchise disclosure document referencing Franchisor's right to obtain injunctive relief are hereby amended to refer to Franchisor's right to seek to obtain injunctive relief.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, several provisions address the franchisee's rights under Minnesota Statutes, Chapter 80C. The document explicitly states that nothing within it or the franchise agreement can diminish the franchisee's rights as provided by Minnesota law, including their rights to procedures, forums, or remedies. This suggests Belocal aims to ensure franchisees retain all statutory rights.
Specifically, if any part of the Belocal franchise agreement is inconsistent with the Minnesota Franchise Act, the Act's requirements will take precedence and the conflicting provisions of the agreement will be ineffective. Furthermore, any required release of claims or acknowledgment of facts that would negate judicial review of actions violating the Franchise Act will exclude claims arising under the Act, rendering such acknowledgments void concerning those claims. This protects franchisees from inadvertently waiving their rights under the Minnesota Franchise Act.
Additionally, the FDD notes that certain provisions common in franchise agreements are modified or unenforceable in Minnesota. For example, any clause requiring litigation outside of Minnesota or setting a claims period different from the statute of limitations may not be enforceable. References to liquidated damages or waivers of jury trials are deleted to comply with Minnesota law. These amendments ensure that the Belocal franchise agreement adheres to Minnesota's specific legal protections for franchisees.
In summary, Belocal's FDD includes amendments and clarifications intended to prevent the reduction of franchisee rights under Minnesota Statutes, Chapter 80C. Prospective franchisees should still carefully review the entire agreement and consult with legal counsel to fully understand their rights and obligations under both the franchise agreement and Minnesota law.