Does the release required for renewal or transfer of a Cream franchise apply in Minnesota, and if not, why?

According to Cream's 2025 Franchise Disclosure Document, any release required as a condition of renewal or transfer/assignment of a franchise in Minnesota will not apply if it is prohibited by the Minnesota Franchises Law. This protection is specifically tied to claims arising under Minn. Rule 2860.4400D. This means that Cream franchisees in Minnesota may have additional rights and protections under Minnesota state law regarding claims, and they cannot be forced to waive these rights as a condition of renewing or transferring their franchise.

This provision is annexed to and forms part of the Franchise Agreement if the franchised business will be operated wholly or partly in Minnesota, or if the franchisee is a resident of, domiciled in, or actually present in Minnesota. This ensures that Minnesota franchisees receive the full protection of their state's franchise laws, preventing Cream from imposing terms that would undermine those rights. The FDD also states that certain parts of a provision might not be enforceable under Minn. Rule Part 2860.4400J, but Cream agrees to enforce the provision to the extent the law allows.

For prospective Cream franchisees in Minnesota, this is a beneficial provision. It ensures that they retain their legal rights under Minnesota law, even when renewing or transferring their franchise. This can provide added security and recourse in the event of disputes or disagreements with Cream. Franchisees should consult with a legal professional to fully understand their rights and protections under Minnesota law.