Under Minnesota law, what rights is a Christian Brothers Automotive franchisee prohibited from waiving?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
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- m. No statement, questionnaire, or acknowledgment 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 in connection with the franchise.
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Source: Item 22 — CONTRACTS (FDD page 76)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, Minnesota law protects franchisees from unintentionally waiving certain rights. Specifically, no statement, questionnaire, or acknowledgment signed by a franchisee at the start of their franchise relationship can waive claims under any applicable state franchise law. This protection includes claims related to fraud in the inducement, meaning a franchisee cannot waive their right to sue Christian Brothers Automotive for misleading them into signing the agreement. Additionally, franchisees cannot disclaim reliance on statements made by Christian Brothers Automotive, its sellers, or representatives. This means a franchisee can't be forced to agree they didn't rely on information provided by the franchisor.
This provision is designed to supersede any conflicting terms in other documents executed with the franchise agreement, reinforcing the protection for franchisees. Christian Brothers Automotive acknowledges that if any part of the agreement conflicts with Minnesota law, the state law will take precedence. This ensures that franchisees in Minnesota retain their legal rights and protections under state franchise law, regardless of what the franchise agreement might otherwise state.
Christian Brothers Automotive retains the right to challenge the enforceability of any state law that declares a provision in the agreement void or unenforceable. However, the core principle remains that franchisees cannot be compelled to waive their rights under Minnesota franchise law through acknowledgments or questionnaires at the beginning of their franchise relationship. This measure aims to prevent franchisees from unknowingly relinquishing their legal recourse in situations such as fraud or misrepresentation.