Does Minnesota Rule 2860.4400(D) allow Cinnaholic to require a franchisee to assent to a general release?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Minnesota Rule 2860.4400(D) prohibits a franchisor from requiring a franchisee to assent to a general release; a franchisee may enter into a release as a part of the voluntary settlement of disputes.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–35)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Minnesota Rule 2860.4400(D) does not allow Cinnaholic to require a franchisee to assent to a general release. However, the rule does state that a franchisee may enter into a release as part of the voluntary settlement of disputes. This information is specifically for prospective franchisees in the state of Minnesota.
This means that Cinnaholic cannot include a clause in its franchise agreement that forces a franchisee to sign a general release, which would waive their rights to sue the company. However, if a dispute arises, a franchisee can voluntarily agree to a release as part of settling that specific dispute.
This protection ensures that franchisees are not forced into waiving their legal rights upfront but retains the flexibility to resolve conflicts through negotiated settlements. Prospective Cinnaholic franchisees in Minnesota should be aware of this protection, as it prevents the franchisor from imposing a blanket release of liability.