Does the Minnesota addendum affect Closet Storage Concepts franchisees outside of Minnesota?

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ADDENDUM REQUIRED BY THE STATE OF MINNESOTA

This addendum to the Disclosure Document is agreed to this day of __________, 20__, and effectively amends and revises said Disclosure Document and Franchise Agreements as follows:

• 1. Item 13 of the Disclosure Document and the appropriate section of the Franchise Agreements are amended by the addition of the following language to the original language that appears therein, to the extent applicable:
  • "In accordance with applicable requirements of Minnesota law, Franchisor shall protect Franchisee's right to use the trademarks, service marks, trade names, logotypes or other commercial symbols and/or shall indemnify Franchise from any loss, costs or expenses arising out of any claim, suit or demand regarding such use."
• 1. Item 17 of the Disclosure Document, and the appropriate sections of the Franchise Agreements are amended by the addition of the following language to the original language that appears therein, to the extent applicable:
  • "With respect to franchises governed by Minnesota law, the franchisor will comply with Minnesota Statutes Sec. 80C.14, Subds.3, 4 and 5, which require (except in certain specified cases) that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the franchise agreement and that consent to the transfer of the franchise will not be unreasonably withheld."
• 1. Item 17 of the Disclosure Document, and the appropriate sections of the Franchise Agreements are amended by the addition of the following language to amend the Governing Law, Jurisdiction and Venue, and Choice of Forum sections, to the extent applicable:
  • "Minn. Stat. Sec. 80C.21 and 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 agreements can abrogate or reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction."
• 1. Item 17 of the Disclosure Document and the appropriate sections of the Franchise Agreements are amended by the addition of the following language to the original language that appears therein, to the extent applicable:
  • "Minn. Rule 2860.4400D prohibits us from requiring you to assent to a general release."
• 1. Any reference to liquidated damages in the Franchise Agreements is hereby deleted in accordance with Minn. Rule 2860.4400J which prohibits requiring you to consent to liquidated damages, to the extent applicable.
• 1. Any reference to waiver of a jury trial in the Franchise Agreements is hereby deleted in accordance with Minn. Rule 2860.4400J, to the extent applicable.
• 1. Any offending sections of the Franchise Agreements regarding Limitations of Claims are hereby amended to comply with Minn. Stat. §80C.17, Subd. 5, to the extent applicable.
• 1. Item 6, Insufficient Fund Fees: NSF fees are governed by Minnesota Statute 604.113; which puts a cap of $30 on a NSF check, to the extent applicable. This applies to everyone in Minnesota who accepts checks except banks.
• 1. Under Minn. Rule 2860.440J, the franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. A court will determine if a bond is required. The appropriate sections of the Franchise Agreements are hereby amended accordingly, to the extent applicable.
• 1. No statement, questionnaire, or acknowledgement 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 with the franchise.
• 1. The Franchise Agreements and Items 5 and 7 of the Franchise Disclosure Document are amended to provide that payment of initial franchise fees will be deferred until Franchisee has opened the franchised business.

Source: Item 23 — RECEIPTS (FDD pages 59–238)