Under what circumstances is the Addendum to the Franchise Agreement required for Brightstar Care franchisees in Minnesota?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The provisions of this Addendum form an integral part of and are incorporated into the Franchise Agreement. This addendum is being signed 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 BrightStar Care Agency will be located or operated in the State of Minnesota.
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- The following sentence is added to the end of Sections 1.5 and 13:
With respect to franchises governed by Minnesota law, Franchisor will comply with Minnesota Statute § 80C.14, subdivision 3, 4, and 5 which requires, except in certain cases, that Franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the Franchise Agreement.
- The following sentence is added to the end of Sections 2.2, 12.4.9, and 12.7:
Notwithstanding the foregoing, Franchisee will not be required to assent to a release, assignment, novation, or waiver that would relieve any person from liability imposed by Minnesota Statute §§ 80C.01 – 80C.22.
- The following sentences are added to the end of Sections 15.3 and 15.8:
Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J prohibit Franchisor from requiring arbitration or litigation to be conducted outside Minnesota. In addition, nothing in the Disclosure Document or the Franchise Agreement can abrogate or reduce any of Licensee'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.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 81–92)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, an addendum is required as an integral part of the Franchise Agreement under specific circumstances related to Minnesota. The addendum is necessary if (a) the offer or sale of the franchise was made in the State of Minnesota, (b) the franchisee is a resident of Minnesota, or (c) the BrightStar Care Agency will be located or operated within the State of Minnesota. This ensures that Minnesota-specific legal considerations are incorporated into the franchise agreement.
This addendum modifies certain sections of the standard Franchise Agreement to comply with Minnesota law. For instance, it ensures that Brightstar Care adheres to Minnesota Statute § 80C.14, subdivisions 3, 4, and 5, regarding termination and non-renewal notices, providing the franchisee with 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal, except in certain specified cases. Additionally, the addendum prevents the franchisee from being required to assent to releases, assignments, novations, or waivers that would relieve any person from liability imposed by Minnesota Statute §§ 80C.01 – 80C.22.
Furthermore, the addendum addresses dispute resolution by stating that Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J prohibit Brightstar Care from requiring arbitration or litigation to be conducted outside Minnesota. It also clarifies that nothing in the Disclosure Document or the Franchise Agreement can reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided by Minnesota law. These stipulations provide additional protection to Brightstar Care franchisees operating in Minnesota, ensuring compliance with local laws and regulations.