Can Crisp & Green require a franchisee to consent to termination penalties in Minnesota?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
ADDENDUM TO THE CRISP & GREEN AREA DEVELOPMENT AGREEMENT FOR THE STATE OF MINNESOTA
Notwithstanding anything to the contrary set forth in the Crisp & Green Franchising LLC Area Development Agreement, the following provisions shall supersede and apply to all Crisp & Green franchises offered and sold in the state of Minnesota:
This Minnesota Addendum is only applicable if you are a resident of Minnesota or if your business will be located in Minnesota.
-
- Minn. Stat. Section 80C.21 and Minn. Rule 2860.4400J prohibit Franchisor from requiring litigation to be conducted outside Minnesota. In addition, nothing in this Agreement can abrogate or reduce any of your rights as provided for in Minnesota Statutes, Chapter 80C or your rights to any procedure, forum or remedies provided for by the laws of the jurisdiction.
-
- Franchisor will comply with Minn. Stat. Section 80C.14, subds. 3, 4 and 5, which require, except in certain specified cases, that the Developer be given 90 days' notice of termination (with 60 days to cure).
-
- Franchisor shall not require Developer to assent to a release, assignment, novation or waiver that would relieve any person from liability imposed by Minnesota Statutes, Sections 80C.01 to 80C.22, provided that the foregoing shall not bar the voluntary settlement of disputes
-
- 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.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, the franchisor must comply with Minnesota law regarding franchise terminations. Specifically, the Minnesota Addendum to the Area Development Agreement states that Crisp & Green will adhere to Minn. Stat. Section 80C.14, subds. 3, 4, and 5. This statute generally requires that a developer be given 90 days' notice of termination, with 60 days to cure any issues.
Additionally, the Minnesota Addendum to the Area Development Agreement specifies that nothing in the agreement can reduce any rights provided under Minnesota Statutes, Chapter 80C, or rights to any procedure, forum, or remedies provided by Minnesota law. This suggests that Minnesota franchisees have certain statutory rights that cannot be waived or reduced by the franchise agreement.
Furthermore, the Minnesota Addendum to the Crisp & Green Franchise Disclosure Document states that consent to transfer of the franchise cannot be unreasonably withheld. This provision, along with the notice requirements for termination and non-renewal, aims to protect franchisees' interests under Minnesota law. Therefore, prospective franchisees in Minnesota should carefully review these addenda to understand their rights and protections under state law.