In the context of the Rider for Better Blend, what does the term 'Minnesota Act' refer to?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1. Definitions. Capitalized terms used but not defined in this Rider have the meanings given in the Agreement. The "Minnesota Act" means Minnesota Statutes, Sections 80C.01 to 80C.22.
- 2. Amendments. The Agreement is amended to comply with the following:
Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Franchise Disclosure Document or agreement(s) can abrogate or reduce (1) any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C or (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
With respect to franchises governed by Minnesota law, the franchisor will comply with Minnesota Statutes, Section 80C.14, Subd. 3-5, which require (except in certain specified cases) (1) that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the franchise agreement and (2) that consent to the transfer of the franchise will not be unreasonably withheld.
The franchisor will protect the franchisee's rights to use the trademarks, service marks, trade names, logotypes or other commercial symbols or indemnify the franchisee from any loss, costs or expenses arising out of any claim, suit or demand regarding the use of the name. Minnesota considers it unfair to not protect the franchisee's right to use the trademarks. Refer to Minnesota Statues, Section 80C.12, Subd. 1(g).
Minnesota Rules 2860.4400(D) prohibits a franchisor from requiring a franchisee to assent to a general release.
The franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400J. Also, a court will determine if a bond is required.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the "Minnesota Act" is defined within the Minnesota Rider to the Franchise Agreement. Specifically, it refers to Minnesota Statutes, Sections 80C.01 to 80C.22. This definition is important for prospective franchisees in Minnesota as it clarifies which state laws govern the franchise relationship.
The Minnesota Rider further explains how the Franchise Agreement is amended to comply with Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J). These regulations prohibit Better Blend from requiring litigation to occur outside of Minnesota, enforcing jury trial waivers, or mandating franchisee consent to liquidated damages, termination penalties, or judgment notes. The Rider also ensures that no part of the Franchise Disclosure Document or related agreements can diminish a franchisee's rights under Minnesota Statutes, Chapter 80C, or their access to procedures, forums, or remedies provided by Minnesota law.
Additionally, Better Blend will adhere to Minnesota Statutes, Section 80C.14, Subd. 3-5, regarding termination and non-renewal notices, which generally require a 90-day notice for termination (with 60 days to cure) and a 180-day notice for non-renewal. The Rider also protects the franchisee's right to use Better Blend's trademarks and requires Better Blend to indemnify the franchisee against losses arising from claims related to trademark use, as Minnesota considers it unfair for the franchisor not to provide such protection under Minnesota Statutes, Section 80C.12, Subd. 1(g).
Finally, the Minnesota Rider addresses releases and injunctive relief, stating that Minnesota Rules 2860.4400(D) prohibits Better Blend from requiring a franchisee to agree to a general release. While Better Blend may seek injunctive relief, the franchisee cannot consent to it, and a court will determine if a bond is required, as per Minn. Rules 2860.4400J. These stipulations provide additional protection for Better Blend franchisees operating in Minnesota.