What is the dependency between the franchise agreement and Minnesota law for C12 Group franchises?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
REQUIRED BY STATE OF MINNESOTA
FOR PROSPECTIVE FRANCHISEES IN THE STATE OF MINNESOTA
Minn. State. §80C.21 and Minn. Rule 2860.4400J prohibit us from requiring litigation to be conducted outside Minnesota. In addition, nothing in the disclosure document or agreement can abrogate or reduce any of your rights as provided for in Minnesota Statutes, Chapter 80C, or your rights to any procedure, forum, or remedies provided for by the laws or the jurisdiction.
With respect to franchises governed by Minnesota law, the franchisor will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4, and 5 which require, except in certain specified cases, that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the franchise agreement.
Minn. Rule Part 2860.4400J. prohibits a franchisee from waiving his rights to a jury trial or waiving his rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction, or consenting to liquidated damages, termination penalties or judgment notes. With respect to Franchises governed by Minnesota law, any provisions to the contrary in the disclosure document and/or the franchise agreement are hereby deemed to be deleted.
Source: Item 23 — RECEIPTS (FDD pages 46–137)
What This Means (2025 FDD)
According to the 2025 FDD, Minnesota state laws significantly impact the franchise agreement for C12 Group franchises operating in Minnesota. Specifically, Minnesota Statute §80C.21 and Minnesota Rule 2860.4400J prevent C12 Group from requiring franchisees to conduct litigation outside of Minnesota. Furthermore, no clause within the disclosure document or franchise agreement can diminish a franchisee's rights as protected by Minnesota Statutes, Chapter 80C, or their access to legal procedures, forums, or remedies provided by Minnesota law. This ensures that Minnesota franchisees have the full protection of their state's laws, regardless of what the standard franchise agreement might otherwise stipulate.
Minnesota law also mandates specific notification periods for termination and non-renewal of franchise agreements. Except under certain specified conditions, C12 Group must provide a franchisee with 90 days' notice of termination, including a 60-day period to address the issues leading to termination. For non-renewal, the notification period extends to 180 days. These regulations provide Minnesota franchisees with substantial time to prepare for the end of their franchise agreement, whether through termination or non-renewal, offering a degree of security and planning ability.
Additionally, Minnesota Rule Part 2860.4400J explicitly prohibits C12 Group franchisees from waiving their right to a jury trial, their access to legal procedures, forums, or remedies under Minnesota law, or consenting to liquidated damages, termination penalties, or judgment notes. Any conflicting provisions in the C12 Group disclosure document or franchise agreement are considered void within Minnesota. This ensures that franchisees cannot inadvertently or under pressure relinquish fundamental legal rights and protections afforded to them under Minnesota law.