What specific Minnesota statutes regarding termination apply to Boulder Designs franchises?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
execute this Agreement.
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- The following sentence is added to the end of Section 23.1:
- Notwithstanding the foregoing, the Minnesota Franchise Act shall govern this Agreement.
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- The following sentence is added to the end of Section 23.2:
- Minnesota Statute §80C.21 and Minnesota Rule 2860.4400J prohibit Franchisor from requiring litigation to be conducted outside Minnesota. In addition, nothing in this Agreement can abrogate or reduce Franchisee's rights as provided for in Minnesota
Statutes, Chapter 80C, or Franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
The franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400J.
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- Each provision of this Amendment will be effective only to the extent that, with respect to the provision, the jurisdictional requirements of the Minnesota Franchise Act is met independently of this Amendment. Franchisor does not waive its right to challenge the enforceability of any state law and declares void or unenforceable any provision contained in this Agreement. Franchisor and Franchisee will enforce the provisions of this Agreement to the extent permitted by law.
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- NSF checks are governed by Minnesota Statute 604.113, which puts a cap of $30 on service charges.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, several Minnesota statutes affect the franchise agreement, particularly concerning termination and related issues. Specifically, Minnesota Rules 2860.4400J addresses injunctive relief, stating that a franchisee cannot consent to the franchisor obtaining injunctive relief, although the franchisor retains the right to seek it. This rule impacts the remedies Boulder Designs can pursue in Minnesota. Additionally, Minnesota Statute 604.113 governs NSF checks, capping service charges at $30. This statute directly affects how Boulder Designs handles bounced checks from franchisees in Minnesota.
Furthermore, the FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on franchisor statements. This provision supersedes any conflicting terms in other documents executed with the franchise agreement, strengthening franchisee rights in Minnesota. Boulder Designs also states that each provision of the amendment to the franchise agreement is effective only to the extent that the jurisdictional requirements of the Minnesota Franchise Act are independently met. Boulder Designs does not waive its right to challenge the enforceability of any state law and declares void or unenforceable any provision contained in the agreement.
These statutes and rules provide specific protections and limitations within the franchise relationship in Minnesota. Prospective Boulder Designs franchisees in Minnesota should be aware of these provisions, as they define certain rights and obligations regarding termination, dispute resolution, and financial transactions. It is important for franchisees to understand how these Minnesota-specific regulations modify the standard franchise agreement and to seek legal counsel to fully understand their implications.