Can a Cinnaholic franchisee waive claims under any applicable state franchise law in Minnesota?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
requires that payment of all Initial Franchise Fees be deferred until such time as all initial obligations which we owe to you under the Franchise Agreement and any other agreement have been fulfilled by us and you have commenced doing business pursuant to the Franchise Agreement. Therefore, Initial Franchise Fees must be paid to us in full by you immediately upon the commencement of your CINNAHOLIC® business.
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- Minnesota Statute 80C.21 and Minnesota Rule 2860.4400(J) prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Franchise Disclosure Document or agreement(s) can abrogate or reduce (1) any of the franchisee's rights as provided for in Minnesota Statute 80Cor (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
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- Minnesota considers it unfair to not protect the franchisee's right to use the trademarks. Refer to Minnesota Statute 80C.12 Subd. 1(G). The franchiser will protect the franchisee's rights to use the trademarks, service marks, trade names, logotypes, or other commercial symbols or indemnify the franchisee from any loss, costs, or expenses arising out of any claim, suit, or demand regarding the use of the name.
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- The Limitations of Claims section must comply with Minnesota Statute 80C.17 Subd. 5. NSF checks are governed by Minnesota Statute 604.113, which puts a cap of $30 on service charges.
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- No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, Minnesota law protects franchisees from waiving certain rights. Specifically, no statement, questionnaire, or acknowledgement signed by a Cinnaholic franchisee can waive claims under any applicable state franchise law. This includes protection against fraud in the inducement and ensures franchisees can rely on statements made by Cinnaholic or its representatives.
This provision is significant for prospective Cinnaholic franchisees in Minnesota because it ensures that they retain all rights granted to them under Minnesota Statutes 80C, regardless of any agreement they sign. These rights encompass procedures, forums, and remedies available under Minnesota law. This protection extends to the franchisee's right to use Cinnaholic's trademarks, which Cinnaholic is obligated to protect.
Minnesota law also addresses specific aspects of the franchise relationship, such as limitations on claims, which must comply with Minnesota Statute 80C.17 Subd. 5. Additionally, service charges for NSF checks are capped at $30, as governed by Minnesota Statute 604.113. These regulations ensure that Cinnaholic franchisees in Minnesota are afforded certain protections and rights that cannot be waived, providing a more secure and predictable business environment.