Can Benjamin Franklin Plumbing require a franchisee to assent to a release that deprives them of rights and protections?
Benjamin_Franklin_Plumbing Franchise · 2025 FDDAnswer from 2025 FDD Document
Minnesota Rule 2860.4400D prohibits us from requiring you to assent to a release, assignment, novation, or waiver that would relieve any person from liability imposed by Minnesota Statutes §§ 80C.01 - 80C.22.
Minnesota Rule 2860.4400J prohibits us from requiring you to waive your rights to a trial or to consent to liquidated damages, termination penalties, or judgment notes. This rule does not bar a voluntary arbitration of any matter.
Item 22, Additional Disclosures.
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 the franchise.
Exhibit E to the Franchise Disclosure Document (Questionnaire to be Completed Before Executing Franchise Agreement) is not applicable in Minnesota.
Source: Item 22 — CONTRACTS (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 Benjamin Franklin Plumbing Franchise Disclosure Document, the franchisor's ability to require franchisees to sign releases that waive rights and protections is limited, particularly in certain states like Minnesota and Washington. The FDD includes a sample general release that Benjamin Franklin Plumbing franchisees may be asked to sign when renewing, transferring, or modifying their franchise territory, or when licensing an additional territory. However, the document explicitly states that this release will be modified where required by state law to ensure it does not infringe upon the franchisee's rights under that state's laws.
Specifically, the general release does not apply to claims arising under the Washington Franchise Investment Protection Act. For franchisees in Minnesota, the FDD states that Benjamin Franklin Plumbing is prohibited from requiring franchisees to waive rights as provided for in Minnesota Statutes, Chapter 80C, or rights to any procedure, forum, or remedies provided by the laws of the jurisdiction. Additionally, Minnesota Rule 2860.4400D prohibits Benjamin Franklin Plumbing from requiring franchisees to assent to a release, assignment, novation, or waiver that would relieve any person from liability imposed by Minnesota Statutes §§ 80C.01 - 80C.22.
Furthermore, the FDD clarifies that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by the franchisor or its representatives. This provision takes precedence over any other conflicting terms in documents related to the franchise agreement. The Exhibit E questionnaire is not applicable in Minnesota.
These stipulations suggest that while Benjamin Franklin Plumbing may present a general release, its enforceability is subject to state laws designed to protect franchisees. Prospective franchisees should carefully review these releases, understand their rights under applicable state laws, and consult with legal counsel to ensure they are not unknowingly waiving protected rights.