What Minnesota rules and regulations govern the Cool Binz franchise agreement as per the Rider?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
lict between the terms of this Rider and the terms of the Franchise Agreement, the terms of this Rider shall control and supersede the Franchise Agreement. Any terms not defined herein shall have the same meanings as in the Franchise Agreement and any references to sections and paragraphs refer to the sections and paragraphs of the Franchise Agreement unless stated otherwise.
In recognition of the requirements of the Minnesota Franchises Law, Minn. Stat. 80C.01 through 80C.22, and the Rules and Regulations promulgated thereunder by the Minnesota Commissioner of Commerce, Minn. Rule 2860.0100 through 2860.9930, the parties to the attached Cool Binz International, LLC Franchise Agreement (the "Agreement") agree as follows:
Background. We and you are parties to that certain Franchise Agreement that has been executed concurrently with the execution of this Rider (the "Franchise Agreement"). This Rider is annexed to and forms part of the Agreement.
This Rider is being executed because (a) the offer or sale of the franchise for the COOL BINZ franchise you will operate under the Agreement was made in the State of Minnesota and you will operate the Franchise in the State of Minnesota and/or (b) you are a resident of the State of Minnesota.
Marks. The following language is added at the end of Section 4 of the Agreement:
Pursuant to Minnesota Stat. Sec. 80C.12, Subd. 1(g), we are required to protect any rights that you have to use our proprietary rights, including your right to use the trademarks, service marks, trade names, logotypes or other commercial symbols and indemnify the franchisee from any loss, costs, or expenses arising out of any claim, suite or demand regarding the use of the name.
Termination by Franchisor. The following language is added to Section 12.B of the Agreement:
With respect to franchises governed by Minnesota law, the franchisor will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4, and 5 which require, except in certain specified cases, that (i) a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal of the franchise agreement, and that (ii) consent to the transfer of the franchise will not be unreasonable withheld. The franchisor will comply with Minnesota law in this respect in its performance of the franchise agreement and any ancillary agreements.
Waiver of Punitive Damages and Jury Trial. The following is added to Section 15.I, of the Agreement:
Minn. Rule 2860.4400J. prohibits the waiver of a jury trial.
Limitations of Claims. The following is added to Section 15.K. of the Agreement:
Minn. Stat. 80C.17, Subd. 5 requires that no action may be commenced pursuant to this section more than three (3) years after the cause of action occurs.
Dispute Resolution Procedures/Governing Law.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, the Rider to the franchise agreement for use in Minnesota acknowledges the requirements of the Minnesota Franchises Law, specifically Minn. Stat. 80C.01 through 80C.22, and the rules and regulations promulgated by the Minnesota Commissioner of Commerce, Minn. Rule 2860.0100 through 2860.9930. This Rider is executed because the franchise offer or sale was made in Minnesota, and the franchisee will operate there or is a resident of Minnesota.
Several specific regulations are addressed within the Rider. Cool Binz is required to protect the franchisee's rights to use proprietary rights, including trademarks, and indemnify the franchisee from losses arising from claims regarding the use of the name, as per Minnesota Stat. Sec. 80C.12, Subd. 1(g). The Rider also states that Cool Binz will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4, and 5, which mandate giving a franchisee 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal, and that consent to the transfer of the franchise will not be unreasonably withheld.
Furthermore, Minn. Rule 2860.4400J prohibits the waiver of a jury trial. The Rider also addresses agreements and releases, stating that general releases do not apply to the extent prohibited by applicable law with respect to claims arising under Minn. Rule 2860.4400D, which prevents Cool Binz from requiring a general release that would relieve any person from liability imposed by Minnesota Statutes, Chapter 80C. These stipulations ensure that franchisees retain certain legal rights and protections under Minnesota law, preventing them from being waived through standard agreement clauses.