Does the general release language in the Carvel Franchise Agreement relieve Carvel from liability imposed by the Minnesota Franchises Law?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
0C.14 (subd. 5) currently requires, except in certain specified cases, that consent to the transfer of the Franchise not be unreasonably withheld.
-
- Section 17 (Default and Termination) of the Franchise Agreement will be supplemented by adding the following as Section 17.6 of the Franchise Agreement, which will be considered an integral part of the Franchise Agreement:
- Minnesota law provides you with certain termination rights. In sum, Minn. Stat. § 80C.14 (subds. 3 and 5) currently requires, except in certain specified cases, that you be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of nonrenewal of this Agreement, and that consent to the transfer of the Franchise not be unreasonably withheld.
-
- Section 19.4 (Limitation of Claims) of the Franchise Agreement is amended by adding the following language:
- Notwithstanding the foregoing, any and all claims arising under the Minnesota Franchises Law may be brought within 3 years from the date on which the cause of action accrues.
-
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the general release language in the Franchise Agreement does not relieve Carvel from liability imposed by the Minnesota Franchise Investment Law. Specifically, Section 20.8 of the Franchise Agreement states that the general release will not relieve Carvel or any other person from liability imposed by the Minnesota Franchise Investment Law.
This protection for franchisees extends to litigation as well. Minn. Stat. Sec 80C.21 and Minn. Rule 2860.4400J prohibit Carvel from requiring litigation to be conducted outside Minnesota. The FDD clarifies that nothing in the Franchise Disclosure Document or the agreement can reduce any rights provided to the franchisee under Minnesota Statutes, Chapter 80C, including rights to procedures, forums, or remedies provided by Minnesota law.
Furthermore, Section 19.4 of the Franchise Agreement is amended to allow any and all claims arising under the Minnesota Franchises Law to be brought within 3 years from the date on which the cause of action accrues. This ensures that franchisees have an adequate timeframe to pursue legal action related to franchise law violations.