In Minnesota, can anything in the Bombs Away Franchise Disclosure Document reduce a franchisee's rights as provided for in Minnesota Statutes, Chapter 80C?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
Source: Item 23 — RECEIPTS (FDD pages 36–117)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, specific stipulations apply to franchisees in Minnesota to protect their rights under Minnesota Statutes, Chapter 80C. The FDD explicitly states that nothing within the document or any related agreements can diminish or override any rights granted to Bombs Away franchisees under this chapter. This addendum ensures that Minnesota franchisees retain all protections and remedies afforded to them by state law.
Furthermore, the Minnesota addendum addresses specific provisions to ensure compliance with Minnesota law. For example, Bombs Away must adhere to Minnesota Statutes regarding termination and non-renewal notices, providing franchisees with a 90-day notice for termination (with a 60-day cure period) and a 180-day notice for non-renewal, except in certain specified cases. Additionally, the franchisor cannot unreasonably withhold consent for the transfer of a franchise.
These stipulations in the Bombs Away FDD serve to reinforce the legal rights of franchisees in Minnesota, preventing the franchise agreement from inadvertently or intentionally reducing those rights. This ensures that franchisees operating in Minnesota are afforded the full protection of state law, promoting a fairer and more transparent franchise relationship.