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If a Boulder Designs franchisee is a resident of Minnesota, does the amendment apply?

Boulder_Designs Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. The provisions of this Amendment form an integral part of, and are incorporated into, the Franchise Agreement. This Amendment is being executed because: a) the offer or sale of the franchise to Franchisee was made in the State of Minnesota; b) Franchisee is a resident of the State of Minnesota; and/or c) the franchise will be located or operated in the State of Minnesota.
    1. 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).

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to Boulder Designs' 2025 Franchise Disclosure Document, the amendment to the franchise agreement applies if a franchisee is a resident of Minnesota. Specifically, the amendment is executed because the offer or sale of the franchise was made in Minnesota, the franchisee is a resident of Minnesota, and/or the franchise will be located or operated in Minnesota.

This means that certain provisions within the standard Boulder Designs franchise agreement are modified to comply with Minnesota state law. One key modification is that all initial fees and payments owed by the franchisee are deferred until Boulder Designs completes its pre-opening obligations under the Franchise Agreement. This provides a level of financial assurance to the franchisee, ensuring that they are not paying fees before Boulder Designs has fulfilled its initial responsibilities.

Additionally, the amendment includes a provision to protect the franchisee's rights to use Boulder Designs' trademarks and to indemnify the franchisee from any losses, costs, or expenses arising from claims related to the use of the name. Minnesota law considers it unfair for a franchisor not to protect these trademark rights. The amendment also states that Minnesota considers it unfair to require a franchisee to waive certain provisions of Minnesota law.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.