What specific section of the Christian Brothers Automotive Agreement is deleted under Minnesota law?
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.
Any section of the Agreement (pertaining to liquidated damages) is hereby deleted; provided, that such deletion shall not excuse you from liability for actual or other damages and the formula for assessing liquidated damages shall be admissible in any litigation or proceeding as evidence of actual damages.
To the extent any provision of this Agreement and/or the Disclosure Document are inconsistent with respect to franchises governed by Minnesota law, the franchisor will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, 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, those provisions of the Agreement and/or Disclosure Document are hereby amended accordingly.
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 under Minnesota law. This means that any acknowledgment statement a franchisee might sign as part of starting their franchise will not be legally binding in Minnesota. This modification is specific to franchisees operating in Minnesota.
Additionally, any section of the Agreement pertaining to liquidated damages is deleted for franchises governed by Minnesota law. However, this deletion does not excuse the franchisee from liability for actual or other damages, and the formula for assessing liquidated damages remains admissible as evidence of actual damages in any litigation or proceeding.
These modifications reflect Minnesota's franchise laws, which aim to protect franchisees' rights. The franchisor will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4, and 5, which require 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, except in certain specified cases. These modifications ensure that the Christian Brothers Automotive franchise agreement adheres to Minnesota law, providing franchisees with specific protections and rights within that state.