Can the Bumper Man Franchise Disclosure Document or Franchise Agreement reduce a franchisee's rights under the Minnesota Franchise Investment Law?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, nothing in the Franchise Disclosure Document or Franchise Agreement can abrogate or reduce any of Franchisee's rights as provided for under the Minnesota Franchise Investment Law or Franchisee's rights to any procedure, forum or remedies provided for by the laws of the State of Minnesota.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the Franchise Disclosure Document or Franchise Agreement cannot reduce a franchisee's rights as provided for under the Minnesota Franchise Investment Law. The document explicitly states that nothing within these documents can abrogate or diminish any rights granted to the franchisee under this law, nor can it affect their rights to any procedure, forum, or remedies available under Minnesota state laws. This protection is further reinforced by an addendum specifically for franchisees in Minnesota. This addendum supplements certain sections of the Franchise Agreement to ensure compliance with Minnesota law.
Specifically, the addendum addresses issues such as releases required for renewal, sale, or transfer of the franchise, ensuring they do not violate the Minnesota Franchise Investment Law. It also ensures that Bumper Man complies with Minnesota statutes regarding termination and non-renewal notices, providing franchisees with specific notice periods and opportunities to cure any issues. Furthermore, while Bumper Man retains the right to seek injunctive relief, franchisees cannot consent to the franchisor obtaining such relief, and a court will determine whether a bond or security must be posted.
Additionally, the addendum sets a statute of limitations for actions arising under the Minnesota Franchise Investment Law, requiring franchisees to bring any such action within three years after the cause of action accrues. Section 24(i) of the Franchise Agreement is entirely deleted, indicating a further adjustment to protect franchisee rights under Minnesota law. These measures collectively ensure that franchisees operating in Minnesota retain all rights and protections afforded to them under the Minnesota Franchise Investment Law, regardless of any conflicting terms in the standard Franchise Agreement.