What Minnesota statutes and rules are referenced in the amendment to the C3 Wellness Spa Franchise Agreement?
C3_Wellness_Spa Franchise · 2024 FDDAnswer from 2024 FDD Document
In recognition of the requirements of the Minnesota Statutes, Chapter 80C. and Minnesota Franchise Rules, Chapter 2860, the parties to the attached Aryes Franchising LLC Franchise Agreement (the "Franchise Agreement") as follows:
1.Article 14.C of the Franchise Agreement, under the heading "Conditions for Approval of Transfer," subarticle 14.C(6) is supplemented with the addition of the following language:
; provided, however, that all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of the Minnesota Franchise Act, Minn. Stat. Section 80C.14 et seq. and Minnesota Rules 2860.4400(D), shall remain in force; it being the intent of this provision that the non-waiver provisions of the Minnesota Rules 2860.4400(D) be satisfied; and
Minnesota law provides a franchisee with certain termination and non-renewal rights. Minn. Stat. Sect. 80C.14 Subdivisions 3, 4, and 5 require, except in certain specified cases, that franchisee be given 180 days-notice of nonrenewal of this Agreement by Franchisor.
- Article 15.B of the Franchise Agreement, under the heading "Conditions for Renewal," sub article 15.B(8) is supplemented with the addition of the following language:
; provided, however, that all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of the Minnesota Franchise Act, Minn. Stat. Section 80C.14 et seq. and Minnesota Rules 2860.4400(D), shall remain in force; it being the intent of this provision that the non-waiver provisions of the Minnesota Rules 2860.4400(D) be satisfied; and
Minnesota law provides a franchisee with certain termination and non-renewal rights. Minn. Stat. Sect. 80C.14 Subdivisions 3, 4, and 5 require, except in certain specified cases, that franchisee be given 180 days-notice of nonrenewal of this Agreement by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 59–293)
What This Means (2024 FDD)
According to the 2024 C3 Wellness Spa FDD, the amendment to the franchise agreement references specific Minnesota statutes and rules. These include Chapter 80C of the Minnesota Statutes, which generally covers franchise regulations, and Chapter 2860 of the Minnesota Franchise Rules, which provides specific guidelines and procedures related to franchising within the state.
Additionally, the amendment refers to Minn. Stat. Section 80C.14 et seq. and Minnesota Rules 2860.4400(D), particularly concerning franchisee rights related to transfers and non-waiver provisions. It also mentions Minn. Stat. Sect. 80C.14 Subdivisions 3, 4, and 5, which mandate that C3 Wellness Spa provide franchisees with a 180-day notice of nonrenewal, except in certain specified cases.
Furthermore, the document states that Item 6, "Other Fees", are governed by Minnesota Statute 604.113, which puts a cap of $30 on service charges for insufficient funds. Item 13 is supplemented by the addition of Minn. Stat. Sec. 80C.12(g), regarding reimbursement for costs incurred in the defense of the use of marks. Item 17 is supplemented by the addition of Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5, which require that the franchisee be given 90 days-notice of termination (with 60 days to cure) and 180 days-notice of non-renewal of the Agreement. Minn. Rule 2860.4400D prohibits a franchisor from requiring a franchisee to assent to a general release. Minn. Stat. §80C.21 and Minn. Rule 2860.4400J prohibit C3 Wellness Spa from requiring litigation to be conducted outside Minnesota.
These references ensure that C3 Wellness Spa franchisees in Minnesota are aware of their rights and protections under state law, particularly concerning termination, non-renewal, transfer conditions, dispute resolution, and other fees. Prospective franchisees should carefully review these statutes and rules to fully understand their legal rights and obligations.