Can the Casiola Disclosure Document or Franchise Agreement reduce a franchisee's rights under Minnesota Statutes, Chapter 80C?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
ng: With respect to franchises governed by Minnesota law, we will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5, which require, except in certain specified cases, that you be given 90 days- notice of termination (with 60 days to cure) and 180 days-notice of non-renewal of the Agreement.
Casiola. Multi-State FDD April 25, 2024
- D. Item 17 "Renewal, Termination, Transfer and Dispute Resolution," Item 17 is supplemented by the addition of the following: Item 17 shall not provide for a prospective general release of claims against us that may be subject to the Minnesota Franchise Law. Minn. Rule 2860.4400D prohibits a franchisor from requiring a franchisee to assent to a general release.
- E. Minn. Stat. §80C.21 and Minn. Rule 2860.4400J prohibit us from requiring litigation to be conducted outside Minnesota.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to the 2024 Casiola Franchise Disclosure Document, the franchise agreement cannot reduce a franchisee's rights as provided for in Minnesota Statutes, Chapter 80C. Specifically, the FDD states that nothing in the disclosure document or franchise 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 of the jurisdiction. This amendment ensures that Minnesota franchisees retain all rights granted to them under Minnesota law, regardless of what the franchise agreement may state.
To further protect franchisees, Casiola will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4, and 5, which require, except in certain specified cases, that you be given 90 days-notice of termination (with 60 days to cure) and 180 days-notice of non-renewal of the Agreement. This provides franchisees with ample time to address any issues that could lead to termination or to prepare for the non-renewal of their agreement.
Moreover, the Casiola FDD includes a Minnesota Franchise Agreement Amendment that supplements specific articles within the agreement to ensure franchisee rights are upheld. For instance, Article 14.C.(6), concerning conditions for approval of transfer, and Article 15.B.(8), addressing conditions for renewal, are both amended to ensure that all rights enjoyed by the franchisee under the Minnesota Franchise Act remain in force. This includes rights and causes of action arising from Minn. Stat. Section 80C.14 et seq. and Minnesota Rules 2860.4400(D), satisfying the non-waiver provisions of Minnesota Rules 2860.4400(D).