What Minnesota statutes govern the Bombs Away franchise agreement?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- **1.
Definitions.** Capitalized terms used but not defined in this Rider have the meanings given in the Agreement.
The "Minnesota Act" means Minnesota Statutes, Sections 80C.01 to 80C.22.
- **2.
Amendments.** The Agreement is amended to comply with the following:
- 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, and therefore the applicable provision of the Agreement is amended to state "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues."
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, several Minnesota statutes and rules govern the franchise agreement for franchisees operating in Minnesota. The "Minnesota Act" is defined as Minnesota Statutes, Sections 80C.01 to 80C.22.
The FDD states that Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit Bombs Away 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. Additionally, 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.
For franchises governed by Minnesota law, Bombs Away will comply with Minnesota Statutes, Section 80C.14, Subd. 3-5, which mandates that franchisees receive 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal, except in specific cases. Furthermore, consent to the transfer of the franchise will not be unreasonably withheld. Bombs Away must also protect the franchisee's rights to use trademarks and indemnify them from losses arising from claims regarding the use of the name, as referenced in Minnesota Statutes, Section 80C.12, Subd. 1(g).
Minnesota Rules 2860.4400(D) also prevents Bombs Away from requiring a franchisee to agree to a general release. The franchisee cannot consent to Bombs Away obtaining injunctive relief; however, Bombs Away may seek injunctive relief, with the court determining if a bond is required, as per Minn. Rules 2860.4400J. The Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5, limiting actions to within three years after the cause of action accrues.