Does the Bft Franchise Agreement allow for the abrogation or reduction of a franchisee's right to any procedure, forum, or remedies that the laws of the jurisdiction provide under Minnesota Statutes chapter 80C?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
J (Obligations of Franchisee Upon Termination, Expiration or Non-Renewal) of the Franchise Agreement:
Franchisor and Franchisee acknowledge that certain parts of this provision might not be enforceable under Minn. Rule Part 2860.4400J. However, Franchisor and Franchisee agree to enforce the provision to the extent the law allows.
- Governing Law. The following sentence is added to the end of Section 16.1 (Governing Law) of the Franchise Agreement:
Nothing in this Agreement will abrogate or reduce any of Franchisee's rights under the Minnesota Statutes Chapter 80C or Franchisee's right to any procedure, forum or remedies that the laws of the jurisdiction provide.
9.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the Franchise Agreement does not allow for the abrogation or reduction of a franchisee's rights under Minnesota Statutes Chapter 80C, or their right to any procedure, forum, or remedies that the laws of the jurisdiction provide. This protection is explicitly stated in an addition to Section 16.1, 'Governing Law,' of the Franchise Agreement. This ensures that franchisees operating in Minnesota retain all rights and legal recourse available to them under Minnesota law.
Furthermore, the FDD notes that Section 16.6, 'Consent to Jurisdiction,' of the Franchise Agreement also includes language reinforcing this protection. It states that nothing in the agreement will abrogate or reduce any of the franchisee's rights under Minnesota Statutes Chapter 80C, or their right to any procedure, forum, or remedies that the laws of the jurisdiction provide. This provision also references Minn. Stat. Section 80C.21 and Minn. Rule 2860.4400J, which generally prohibits Bft from requiring litigation to be conducted outside of Minnesota, except in certain specified cases.
These clauses are designed to provide franchisees with assurance that their legal rights under Minnesota law are fully protected and cannot be diminished by the terms of the Franchise Agreement. This is a significant benefit for prospective franchisees in Minnesota, as it ensures they have access to the legal protections and remedies afforded by state law, and that Bft must adhere to Minnesota's franchise regulations.