Does the Better Blend Franchise Disclosure Document abrogate any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
In the State of Minnesota only, this Disclosure Document is amended as follows:
- 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.
- The Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5, which states "No action may be commenced pursuant to this Section more than three years after the cause of action accrues."
Source: Item 23 — RECEIPTS (FDD pages 43–157)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the document is amended specifically for franchisees in the state of Minnesota to ensure that none of the standard franchise agreement terms reduce or eliminate any rights granted to franchisees under Minnesota Statutes, Chapter 80C. This addendum explicitly states that nothing in the Franchise Disclosure Document or associated agreements can diminish a franchisee's rights as protected by Minnesota law. Furthermore, franchisees retain their rights to any procedure, forum, or remedies provided by Minnesota law. This is a protective measure for franchisees, ensuring that the franchise agreement adheres to Minnesota's franchise regulations.
In addition to protecting franchisee rights, the Minnesota addendum addresses termination and non-renewal conditions. Better Blend will comply with Minnesota Statutes, Section 80C.14, Subd. 3-5, which generally requires the franchisor to provide a franchisee with 90 days' notice of termination (including 60 days to cure the issue) and 180 days' notice for non-renewal of the franchise agreement. The franchisor also cannot unreasonably withhold consent for the transfer of the franchise. These stipulations provide franchisees with more security and time to address any potential issues or plan for transitions.
Moreover, the addendum ensures that Better Blend will protect the franchisee's rights to use trademarks, service marks, trade names, logotypes, or other commercial symbols. Better Blend will also indemnify the franchisee from any losses, costs, or expenses arising from claims, suits, or demands related to the use of the franchise's name. This protection extends to preventing the franchisor from requiring a franchisee to agree to a general release and ensuring that franchisees cannot consent to the franchisor obtaining injunctive relief, although the franchisor retains the right to seek such relief. The addendum also clarifies that any limitations on claims must comply with Minnesota Statutes, Section 80C.17, Subd. 5, which sets a three-year limit for commencing actions after the cause of action accrues. These measures collectively reinforce the legal protections afforded to Better Blend franchisees in Minnesota.