What is the geographic scope of the Minnesota Rider for Care Plus Medical Ucc?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
MINNESOTA RIDER TO FRANCHISE AND MULTI-UNIT DEVELOPMENT AGREEMENT
This Rider amends the Franchise and Multi-Unit Development Agreement dated (the "Agreement"), between Care Plus Medical UCC, LLC, a Wyoming Limited Liability Company ("Care Plus Medical UCC") and, a ("Franchisee").
- 1. Definitions. Capitalized terms used but not defined in this Rider have the meanings given in the Agreement. The "Minnesota Act" means Minnesota Statutes, Sections 80C.01 to 80C.22.
- 2. Amendments. The Agreement is amended to comply with the following:
Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Franchise Disclosure Document or agreement(s) can abrogate or reduce (1) any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C or (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
With respect to franchises governed by Minnesota law, the franchisor will comply with Minnesota Statutes, Section 80C.14, Subd. 3-5, which require (except in certain specified cases) (1) 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 and (2) that consent to the transfer of the franchise will not be unreasonably withheld.
The franchisor will protect the franchisee's rights to use the trademarks, service marks, trade names, logotypes or other commercial symbols or indemnify the franchisee from any loss, costs or expenses arising out of any claim, suit or demand regarding the use of the name. Minnesota considers it unfair to not protect the franchisee's right to use the trademarks. Refer to Minnesota Statues, Section 80C.12, Subd. 1(g).
Minnesota Rules 2860.4400(D) prohibits a franchisor from requiring a franchisee to assent to a general release.
The franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400J. Also, a court will determine if a bond is required.
The Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5, and therefore the applicable provision of the Agreement is amended to state "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues."
3. Effective Date. This Rider is effective as of the Effective Date.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, the Minnesota Rider applies to franchise agreements within the state of Minnesota. This rider is designed to ensure that the franchise agreement complies with Minnesota state laws, specifically Minnesota Statutes, Sections 80C.01 to 80C.22, also referred to as the "Minnesota Act" within the rider.
Specifically, the Minnesota Rider addresses several key legal considerations for franchisees operating in Minnesota. It clarifies that certain provisions in the standard franchise agreement are amended to align with Minnesota law. These amendments cover areas such as litigation venues, jury trial waivers, liquidated damages, and termination penalties, all of which must adhere to Minnesota Statutes. The rider also ensures that the franchisee's rights under Minnesota Statutes, Chapter 80C, are protected and cannot be reduced by any terms in the franchise agreement or disclosure documents.
Furthermore, the rider emphasizes compliance with Minnesota Statutes, Section 80C.14, Subd. 3-5, regarding termination and non-renewal notices, as well as the franchisor's obligation to protect the franchisee's trademark rights under Minnesota Statutes, Section 80C.12, Subd. 1(g). The rider also addresses limitations on claims, ensuring they comply with Minnesota Statutes, Section 80C.17, Subd. 5, setting a three-year statute of limitations for actions. In essence, the Minnesota Rider acts as a safeguard, ensuring that Minnesota franchisees receive the full protection of their state's franchise laws, regardless of what the standard Care Plus Medical Ucc franchise agreement might otherwise stipulate.