Is a Buona franchisee required to execute a general release to renew their franchise agreement?

According to Buona's 2025 Franchise Disclosure Document, the execution of a general release upon renewal or transfer is not applicable to claims arising under Minnesota franchise law. This information is specifically an amendment to Item 17 of the Franchise Disclosure Document for franchises governed by Minnesota law. This means that if a Buona franchisee is operating under Minnesota law, they cannot be compelled to sign a general release to renew or transfer their franchise that would waive their rights under Minnesota franchise law.

This protection ensures that franchisees in Minnesota retain their legal rights and recourse under state franchise laws, even during renewal or transfer processes. The amendment prevents Buona from enforcing a blanket waiver of legal claims, which could potentially disadvantage franchisees. This is particularly important as franchise laws are designed to protect franchisees from unfair practices and power imbalances.

For prospective Buona franchisees in Minnesota, this provision offers a degree of security, knowing that their rights under the Minnesota Franchise Law are preserved. It is important for franchisees to understand their state's franchise laws and how they are protected during the franchise relationship, including renewal and transfer scenarios. This clause ensures that Buona complies with Minnesota law, providing a more equitable framework for franchisees operating in that state.