factual

In connection with the commencement of the Brain Balance franchise relationship, what claims cannot be waived by a franchisee in Minnesota?

Brain_Balance Franchise · 2025 FDD

Answer from 2025 FDD Document

No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including, fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise

seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed with the franchise.

Source: Item 23 — RECEIPTS (FDD pages 72–292)

What This Means (2025 FDD)

According to Brain Balance's 2025 Franchise Disclosure Document, Minnesota franchisees are protected from waiving certain rights and claims when starting their franchise. Specifically, no statement, questionnaire, or acknowledgment signed by a franchisee at the beginning of the franchise relationship can waive claims under any applicable state franchise law. This protection extends to claims of fraud in the inducement, meaning a franchisee cannot waive their right to sue if they were fraudulently convinced to enter the agreement.

Additionally, Minnesota franchisees cannot disclaim reliance on statements made by Brain Balance, its franchise sellers, or anyone acting on the company's behalf. This means a franchisee can hold Brain Balance accountable for representations made during the sales process. This provision is designed to override any conflicting terms in other documents signed with the franchise.

Minnesota Statutes also prevent Brain Balance from requiring franchisees to conduct litigation outside of Minnesota, waive a jury trial, or consent to liquidated damages, termination penalties, or judgment notes. The FDD also states that nothing in the disclosure document or agreements can reduce any of the 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. Furthermore, Minnesota Rules prohibit Brain Balance from requiring a franchisee to assent to a general release.

These regulations ensure that Brain Balance franchisees in Minnesota retain their legal rights and recourse options, preventing them from unknowingly or unwillingly forfeiting protections under state law. This is more protective than some states, where waivers may be enforceable under certain conditions.

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.