What is the effect of Minn. Stat 80C.22 on the standard City Publications franchise agreement?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
curities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until we complete our pre-opening obligations under the franchise agreement. IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Amendment, and understands and consents to be bound by all of its terms. CITY PUBLICATIONS FRANCHISE GROUP, INC.:
FOR THE STATE OF MINNESOTA
| PUBLICATIONS FRANCHISE GROUP, INC. and to a solution of the Minnesota Franchise Law, Minn. Stat 80C.22, and the Rules and Regulations promulgated pursuant thereto by the Minnesota Rule 2860.4400, et. seq., the parties to the attached Franchise Agreement shall be ame franchises governed by Minnesota Law, the Franchisor versual Franchise Law which requires, except in certain specified can days notice of termination (with 60 days to cure) and 180 days notice of termination (with Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not sections 5B.10 and 20B.2 of the Franchise Agreement do not section the section of the first three days are sections 5B.10 and 20B.2 of the Franchise Agreement do not section the first three days are sections 5B.10 and 20B.2 of the Franchise Agreement do not section three days are sections 5B.10 and 20B.2 of the Franchise Agreement do not section three days are sections as a section three days are sections as a section three days are sections as a section three days are sections as a section three days are sections as a section three days are sections as a section three days are sections as a section three days are section to the section three days are section to the section three days are section to the section three days are section three days are section to the section three days are section to the section three days are section to the section three days are section to the section three days are section to the section three days are section to the section three days are section to the section three days are section to the section three days are se | t., Chapter 80C, Sections 80C.01 through the Minnesota Commission of Securities, ment agree as follows: \nended to add that with respect to will comply with the Minnesota ses, that a Franchisee be given 90 days notice of non-renewal of the the provide for a prospective general to the Minnesota Franchise Law. |
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ne Minnesota Commission of Securities, ment agree as follows: \nended to add that with respect to will comply with the Minnesota ses, that a Franchisee be given 90 lays notice of non-renewal of the trovide for a prospective general to the Minnesota Franchise Law. |
| franchises governed by Minnesota Law, the Franchisor version of Franchise Law which requires, except in certain specified can days notice of termination (with 60 days to cure) and 180 days regreement. Sections 5B.10 and 20B.2 of the Franchise Agreement do not | will comply with the Minnesota ses, that a Franchisee be given 90 lays notice of non-renewal of the provide for a prospective general to the Minnesota Franchise Law. to the Minnesota Franchise Law. |
| release of claims against Franchisor which may be subject Minn. Rule 2860.4400D prohibits a franchisor from requiring release. | , a franchisee to assent to a general |
| Section 7 of the Franchise Agreement shall be amended to a Franchise Law, Franchisor will reimburse Franchisee for an the defense of Franchisee's right to use the Marks, so long as in the manner authorized by Franchisor, and so long as Franch and is given the right to manage the defense of the claim in settle or otherwise resolve the claim, and to determine wheth of the claim. | y costs incurred by Franchisee in s Franchisee was using the Marks hisor is timely notified of the claim acluding the right to compromise, |
| ■ Section 19E of the Franchise Agreement shall be deleted in it | ts entirety. |
| Section 24D of the Franchise Agreement shall be amended the Franchised Business or this Agreement or any related agarbitration or an action for a claim that cannot be the subject of three (3) years from the date on which Franchisee or Franchin the exercise of reasonable diligence, of the facts giving rise | greement will be barred unless an of arbitration is commenced within isor knew or should have known, |
| ■ Section 24E shall be deleted in its entirety. | |
| ■ Section 24F shall be deleted in its entirety. | |
| Minn. Stat. §80C.21 and Minn. Rule 2860.4400J prohibit Fr | the Offering Circular or Franchise hts as provided for in Minnesota |
| to be conducted outside Minnesota. In addition, nothing in t | |
| Agreement can abrogate or reduce any of Franchisee's right | |
| Statutes, Chapter 80C, or Franchisee's rights to any procedure | |
| by the laws of the jurisdiction. | |
| 2. |
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, Minn. Stat 80C.22 and related regulations influence the franchise agreement in Minnesota. The agreement is amended to comply with Minnesota law, requiring City Publications to provide franchisees with 90 days' notice of non-renewal (instead of the standard terms) and to adhere to the Minnesota Franchise Law.
Specifically, the standard City Publications franchise agreement is modified to ensure compliance with Minnesota's franchise regulations. This includes stipulations around termination and non-renewal notices, aligning with the protections afforded to franchisees under Minnesota law. Certain sections of the franchise agreement that might conflict with Minnesota law, such as those concerning franchisee releases or defense costs, are either amended or deleted to ensure compliance.
The amendment also addresses potential conflicts related to required releases from franchisees, ensuring they do not violate Minn. Rule 2860.4400D, which prohibits franchisors from requiring such releases. Additionally, the franchisor will cover costs for the franchisee's legal defense related to the use of trademarks, provided the franchisee adheres to specific guidelines and allows the franchisor to manage the defense. Sections of the agreement that do not align with Minnesota statutes are either removed or modified to protect the franchisee's rights under Minnesota law.
In practical terms, this means a City Publications franchisee in Minnesota will receive more protection under the law compared to the standard franchise agreement. They are entitled to longer notice periods for termination or non-renewal, and the agreement is structured to prevent any waivers of rights that Minnesota law protects. This ensures that the franchisee's rights are upheld and that the franchise operates in compliance with Minnesota's franchise regulations.