Is Exhibit G, the 'Franchisee Disclosure Acknowledgment Statement,' of the Christian Brothers Automotive franchise agreement valid in Minnesota?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit G of the Agreement, titled "Franchisee Disclosure Acknowledgment Statement," is hereby deleted and shall have no force or effect.
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No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including, fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor.
This provision supersedes any other term of any document executed with the franchise.
Each provision of this Amendment shall be effective only to the extent that the jurisdictional requirements of Minnesota law applicable to the provisions are met independent of this Amendment.
This Amendment shall have no force or effect if such jurisdictional requirements are not met.
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- As to any state law described in this Amendment that declares void or unenforceable any provision contained in the Agreement, CBAC reserves the right to challenge the enforceability of the state law.
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- All other provisions of the Agreement are hereby ratified and confirmed.
Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive FDD, Exhibit G of the Franchise Agreement, titled "Franchisee Disclosure Acknowledgment Statement," is deleted and has no force or effect in Minnesota. This means that franchisees in Minnesota are not bound by the standard acknowledgment statement included in the standard franchise agreement.
This modification is put in place to protect the franchisee. The FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under Minnesota franchise law, including claims of fraud. This also means that franchisees cannot disclaim reliance on statements made by Christian Brothers Automotive or its representatives. This provision overrides any conflicting terms in any document related to the franchise agreement.
However, the amendment's effectiveness is contingent upon meeting the jurisdictional requirements of Minnesota law. Christian Brothers Automotive retains the right to challenge the enforceability of any state law that voids a provision in the agreement. All other provisions of the agreement remain in effect. Therefore, while Exhibit G is invalid, other aspects of the agreement are still applicable, provided they meet Minnesota's legal requirements.