Which state's Franchise Act governs the Boulder Designs Franchise Agreement in Minnesota?
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 permit
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Boulder Designs Franchise Disclosure Document, the Minnesota Franchise Act governs the Franchise Agreement in Minnesota. Specifically, the FDD includes an amendment to the franchise agreement that addresses jurisdictional requirements within the state. This amendment ensures that each provision of the agreement is effective only to the extent that it independently meets the requirements of the Minnesota Franchise Act.
Boulder Designs also clarifies that it does not waive its right to challenge the enforceability of any state law and declares void or unenforceable any provision contained in the agreement that conflicts with Minnesota law. Both Boulder Designs and the franchisee are expected to enforce the provisions of the agreement to the extent permitted by law.
Furthermore, the FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by Boulder Designs or anyone acting on its behalf. This provision takes precedence over any other conflicting term in any document executed with the franchise, offering additional protection to the franchisee under Minnesota law.
Additionally, the FDD specifies that NSF check service charges are governed by Minnesota Statute 604.113, which caps these charges at $30. This provides a clear limit on what Boulder Designs can charge for NSF checks in Minnesota, protecting franchisees from excessive fees.