Can the Caring Transitions disclosure document or agreement reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibit CTFS from requiring litigation to be conducted outside Minnesota. In addition, nothing in the disclosure document or agreement can abrogate or reduce any of franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the disclosure document or agreement cannot reduce any of a franchisee's rights as provided for in Minnesota Statutes, Chapter 80C. Specifically, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibit Caring Transitions from requiring litigation to be conducted outside Minnesota. The disclosure document or agreement also cannot reduce any franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
This means that if a Caring Transitions franchisee in Minnesota has a legal dispute with the company, they generally have the right to pursue that dispute within the state of Minnesota, under Minnesota law. The franchise agreement cannot force them to litigate in another state or under different legal standards that would diminish their rights under Minnesota law. This protection ensures that Minnesota franchisees are afforded the full legal rights and remedies available to them under state law.
Additionally, Minnesota law prohibits a franchisee from waiving their rights to a jury trial, rights to any procedure, forum, or remedies provided by the laws of the jurisdiction, or consenting to liquidated damages, termination penalties, or judgment notes. While a franchisee cannot consent to obtaining injunctive relief, Caring Transitions may seek injunctive relief, with a court determining if a bond is required. Any conflicting language in the disclosure document or franchise agreement is considered null and void. Furthermore, Minnesota law prohibits Caring Transitions from requiring a franchisee to agree to a general release, and any conflicting provision in the Franchise Agreement is void.
Finally, Minn. Stat. Sec. 80C.17, Subd. 5 states that an action may be commenced to enforce any provision of the Minnesota Franchise Act (Minn. Stat. Secs. 80C.01 to 80C.22, inclusive) or any rule or order thereunder within three years after the cause of action accrues. Any language to the contrary in the Franchise Disclosure Document or the Franchise Agreement is null and void. Also, no statement, questionnaire, or acknowledgement signed by the franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Caring Transitions or its representatives. This provision takes precedence over any conflicting term in any document related to the franchise.