In Minnesota, can Craters & Freighters require a franchisee to assent to a general release?

According to the 2025 Craters & Freighters Franchise Disclosure Document, Minnesota Rule 2860.4400(D) explicitly prohibits Craters & Freighters from requiring a franchisee to agree to a general release. This means that Craters & Freighters cannot force a franchisee to sign a document that broadly waives their rights to make future claims against the company.

This protection is significant for prospective Craters & Freighters franchisees in Minnesota. It ensures that franchisees retain the ability to pursue legal action against the franchisor if issues arise during the franchise term, without having been forced to relinquish that right upfront. This rule aims to balance the power dynamic between franchisor and franchisee, preventing franchisors from using their position to extract overly broad waivers.

Many states have franchise-specific laws or regulations to protect franchisees. These laws often address issues such as termination rights, transfer restrictions, and dispute resolution. The prohibition against general releases is one such protection, ensuring franchisees are not compelled to give up their legal rights as a condition of entering into the franchise agreement.