Under the Minnesota Rider, what rights of the Budget licensee are not abrogated or reduced?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibit Budget in certain cases from requiring litigation to be conducted outside Minnesota. Those provisions also provide that no condition, stipulations or provision in the Budget License Agreement shall in any way abrogate or reduce any rights you have under the Minnesota Franchises Law, including (if applicable) the right to submit matters to the jurisdiction of the courts of Minnesota and the right to any procedure, forum or remedies that the laws of the jurisdiction provide.
Minn. Rule Part 2860.4400J prohibit a licensee in certain cases from waiving rights to a jury trial; waiving rights to any procedure, forum or remedies provided by the laws of the jurisdiction; or consenting to liquidated damages, termination penalties or judgment notes. However, Budget and you agree to enforce these provisions in the Budget License Agreement to the maximum extent the law allows.
Source: Item 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, several clauses within the Budget Rental System Agreement are modified by the Minnesota Rider to ensure compliance with Minnesota Statutes. Specifically, Minn. Stat. Section 80C.21 and Minn. Rule Part 2860.4400J ensure that no condition, stipulation, or provision in the Budget License Agreement diminishes the rights licensees have under Minnesota Franchises Law. This includes the right to submit matters to Minnesota courts and access procedures, forums, or remedies provided by Minnesota law.
The Minnesota Rider explicitly states that certain provisions within the Rental System Agreement will not override the rights granted to the licensee under Minnesota law. This protection extends to the licensee's right to a jury trial, rights to procedures, forums, and remedies provided by the jurisdiction's laws, and protections against waiving these rights. Additionally, the licensee cannot be forced to consent to liquidated damages, termination penalties, or judgment notes, ensuring a fair legal standing within the franchise agreement.
These stipulations are crucial for prospective Budget franchisees in Minnesota, as they guarantee that the franchise agreement adheres to Minnesota law, preventing Budget from imposing terms that would undermine the franchisee's legal rights within the state. This ensures that Minnesota franchisees retain all rights and remedies available to them under state law, despite any potentially conflicting terms in the standard Budget franchise agreement.