If the Franchisee is a resident of Minnesota, how does this affect the Bft Franchise Agreement?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 17: RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION]
MINNESOTA
-
- The disclosure in the Item 6 chart, entitled Lost Revenue Damages, is deleted in its entirety.
-
- The following language is added to the end of Item 13:
Provided you have complied with all provisions of the Franchise Agreement applicable to the Marks, we will protect your rights to use the marks and we also will indemnify you from any loss, costs or expenses from any claims, suits or demands regarding your use of the Marks in accordance with Minn. Stat. Sec. 80C.12 Subd. 1(g).
- The following is added at the end of the chart in Item 17:
With respect to franchises governed by Minnesota law, we will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, that you be given 90 days' notice of termination (with 60 days to cure) of the Franchise Agreement and Multi-Unit Agreement and 180 days' notice for non-renewal of the Franchise Agreement and Multi-Unit Agreement.
Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibits us from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial or requiring the Area Developer or Franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Disclosure Document, Multi-Unit Agreement or Franchise Agreement can abrogate or reduce any of Area Developer's or Franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or Area Developer's or Franchisee's rights to any procedure, forum or remedies provided for by the laws of the jurisdiction.
Any release required as a condition of renewal or transfer/assignment will not apply to the extent prohibited by governing law with respect to claims arising under Minn. Rule 2860.4400D.
NEW YORK
- The following information is added to the cover page of the Franchise Disclosure Document:
[Item 17: RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION]
Provided Franchisee has complied with all provisions of the Franchise Agreement applicable to the Mark, Franchisor will protect Franchisee's rights to use the Marks and Franchisor will indemnify Franchisee from any loss, costs or expenses from any claims, suits or demands regarding Franchisee's use of the Marks in accordance with Minn. Stat. Sec 80C.12 Subd. 1(g).
- Interest and Late Charges. The following language is added to the end of Section 5.11 (Interest and Late Charges) of the Franchise Agreement:
Notwithstanding the foregoing, Franchisee and Franchisor acknowledge that under Minnesota Statute 604.113 Franchisee's penalty for an insufficient funds check will be limited to $30 per occurrence.
- Injunctive Relief. The following language is added to the end of Section 12.2 (Injunctive Relief) of the Franchise Agreement:
Notwithstanding the foregoing, a court will determine if a bond is required to obtain injunctive relief.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, several modifications and stipulations are added to the standard franchise agreement if the franchisee is a resident of Minnesota.
First, the disclosure regarding Lost Revenue Damages in Item 6 is entirely deleted. Additionally, Bft will protect the franchisee's rights to use the marks and will indemnify them from any losses, costs, or expenses from claims related to the use of marks, in accordance with Minn. Stat. Sec. 80C.12 Subd. 1(g), provided the franchisee has complied with all applicable provisions of the Franchise Agreement.
Furthermore, Bft must comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4, and 5, which mandates that the 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 Multi-Unit Agreement, except in certain specified cases. Minnesota law also prohibits Bft from requiring litigation to be conducted outside of Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties, or judgment notes. The franchise agreement cannot reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided by Minnesota law. Any release required for renewal or transfer will not apply to claims arising under Minn. Rule 2860.4400D to the extent prohibited by law.
Lastly, the franchisee's penalty for an insufficient funds check will be limited to $30 per occurrence under Minnesota Statute 604.113, and a court will determine if a bond is required to obtain injunctive relief.