factual

Are there any geographic limitations on where the Minnesota Franchise Law applies to City Publications franchises?

City_Publications Franchise · 2025 FDD

Answer from 2025 FDD Document

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  • 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 amended franchises governed by Minnesota Law, the Franchise repractise 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
| 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.

Source: Item 23 — RECEIPT (FDD pages 39–129)

What This Means (2025 FDD)

According to City Publications' 2025 Franchise Disclosure Document, the Minnesota Franchise Law, specifically Minn. Stat. §80C.21 and Minn. Rule 2860.4400J, impacts the franchise agreement. These regulations ensure that the franchise agreement cannot reduce or abrogate any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C. Additionally, the franchise agreement cannot mandate that arbitration or other proceedings be conducted outside of Minnesota, safeguarding the franchisee's legal rights within the state. This suggests that the Minnesota Franchise Law is designed to protect franchisees operating within the state of Minnesota, without specifying particular geographic limitations within the state itself.

The addendum for Minnesota-based City Publications franchises modifies certain sections of the standard franchise agreement to align with Minnesota law. For instance, franchisees must be given 90 days' notice of non-renewal with 60 days to cure, and 180 days' notice of termination, aligning with the Minnesota Franchise Law. The addendum also addresses issues such as general releases, ensuring they do not violate Minn. Rule 2860.4400D, which prohibits franchisors from requiring franchisees to assent to a general release of claims. These modifications ensure that the franchise agreement complies with Minnesota’s franchise regulations, providing specific protections to franchisees operating in Minnesota.

Furthermore, Section 7 of the Franchise Agreement is amended to ensure that City Publications will reimburse the franchisee for any costs incurred in defending the franchisee's right to use the Marks, provided the franchisee was using the Marks in the manner authorized by City Publications. This protection is contingent on City Publications being timely notified of the claim and given the right to manage the defense, including the right to compromise or settle the claim. This amendment reinforces the franchisor's responsibility to support its franchisees in legal matters related to the use of the franchise's trademarks within Minnesota, further solidifying the application of Minnesota law to City Publications franchises operating in the state.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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