To what extent does the release required as a condition of renewal, sale, or assignment/transfer apply to Bumper Man franchisees in Minnesota?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
Sections 3(b) and 16(d) of the Franchise Agreement will be supplemented by the addition of the following sentence: "However, any release required as a condition of renewal, sale and/or assignment/transfer will not apply to the extent prohibited by the Minnesota Franchise Investment Law."
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man Franchise Disclosure Document, the standard release required as a condition of renewal, sale, or assignment/transfer of a franchise agreement is limited for franchisees in Minnesota. Specifically, any such release will not apply to the extent that it is prohibited by the Minnesota Franchise Investment Law. This protection is afforded to franchisees who are residents of Minnesota or whose Bumper Business will be located in Minnesota. This provision is outlined in an addendum to the franchise agreement that is specifically for Minnesota franchisees.
This addendum modifies sections of the standard franchise agreement to ensure compliance with Minnesota law. For example, the addendum states that Bumper Man will comply with specific Minnesota statutes requiring that franchisees be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal, except in certain specified cases. The addendum also clarifies that while Bumper Man may seek temporary injunctive relief, the franchisee cannot consent to Bumper Man obtaining such relief, and a court will determine whether a bond or security must be posted.
Furthermore, the addendum addresses legal actions, stating that a Bumper Man franchisee must bring any action arising under the Minnesota Franchise Investment Law within three years after the cause of action accrues. It also deletes a section of the standard franchise agreement entirely and reiterates that Minnesota law prohibits Bumper Man from requiring litigation to be conducted outside of Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties, or judgment notes. These stipulations collectively ensure that Minnesota franchisees retain their rights and protections under state law, even within the context of the franchise agreement.