Regarding lost revenue damages for Bft franchises, to what extent will the provision in Section 15.3.J be enforced, considering Minn. Rule Part 2860.4400J?

According to Bft's 2025 Franchise Disclosure Document, the enforceability of lost revenue damages as outlined in Section 15.3.J of the Franchise Agreement is specifically addressed for franchises governed by Minnesota law. Bft acknowledges that certain parts of this provision might not be enforceable due to Minn. Rule Part 2860.4400J. However, Bft states that it intends to enforce the provision to the extent that the law allows.

This means that while Bft includes a clause about lost revenue damages, its ability to actually collect those damages from a franchisee in Minnesota may be limited by state regulations. Minn. Rule Part 2860.4400J places restrictions on clauses related to liquidated damages and termination penalties.

For a prospective Bft franchisee in Minnesota, this is a potentially beneficial modification. It suggests that the franchisor recognizes the limitations imposed by Minnesota law regarding certain financial penalties. However, it is important to note that Bft will still attempt to enforce the provision to the maximum extent legally permissible, so the franchisee should be aware of the specific circumstances under which lost revenue damages might still be pursued. Franchisees should seek legal counsel to fully understand their rights and obligations under Minnesota law.