What rights of a Belocal franchisee in Minnesota cannot be abrogated or reduced by the disclosure document or agreement?
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.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the franchise agreement and disclosure documents cannot reduce or abrogate any rights provided to the franchisee under Minnesota Statutes, Chapter 80C. This protection extends to the franchisee's rights to any procedure, forum, or remedies outlined in that statute. This means that any clause in the franchise agreement that attempts to diminish these rights is unenforceable under Minnesota law.
Minnesota law also includes specific protections for franchisees regarding litigation, jury trials, and liability releases. Belocal is prohibited from requiring franchisees to conduct litigation outside of Minnesota. Franchisees cannot be forced to waive their right to a jury trial, nor can they be compelled to consent to liquidated damages, termination penalties, or judgment notes. Furthermore, franchisees cannot be required to sign a general release of liability related to claims arising from Minnesota Statutes, Sections 80C.01 to 80C.22, although voluntary settlements of disputes are permitted.
These regulations ensure that Belocal franchisees in Minnesota retain important legal rights and protections under state law. The Minnesota addendum to the franchise agreement explicitly states that the agreement is amended to comply with these requirements, superseding any conflicting terms. This compliance aims to protect franchisees from potentially overreaching contractual obligations and ensures a fair balance of power between the franchisor and franchisee within the legal framework of Minnesota.