What rights of the Bombs Away franchisee cannot be reduced or abrogated by the Franchise Disclosure Document or agreement(s) in Minnesota?
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.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the Minnesota Rider to the Franchise Agreement specifies certain rights of the franchisee that cannot be reduced or abrogated by the Franchise Disclosure Document or the franchise agreement(s). These rights are protected under Minnesota Statutes, Chapter 80C, and include the franchisee's rights to any procedure, forum, or remedies provided by Minnesota law. This ensures that franchisees operating in Minnesota retain all the legal protections afforded to them under state law, regardless of what the franchise agreement might otherwise stipulate.
Furthermore, Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) explicitly prohibit Bombs Away from requiring franchisees to conduct litigation outside of Minnesota, waive their right to a jury trial, or consent to liquidated damages, termination penalties, or judgment notes. These provisions are designed to protect franchisees from potentially unfair or overreaching contractual terms that could limit their legal recourse.
Additionally, Bombs Away must comply with Minnesota Statutes, Section 80C.14, Subd. 3-5, regarding termination and non-renewal of the franchise agreement. Except in specific cases, Bombs Away must provide a franchisee with 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal. The franchisor also cannot unreasonably withhold consent for the transfer of the franchise. Bombs Away is also required to protect the franchisee's rights to use trademarks, service marks, trade names, logotypes, or other commercial symbols and indemnify the franchisee from any related claims, suits, or demands, as outlined in Minnesota Statutes, Section 80C.12, Subd. 1(g). Finally, Minnesota Rules 2860.4400(D) prohibits Bombs Away from requiring a franchisee to assent to a general release.