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Under what circumstances does the Minnesota Addendum to the Crisp & Green Area Development Agreement apply?

Crisp_Green Franchise · 2024 FDD

Answer from 2024 FDD Document

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.

    1. 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.
    1. 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).
    1. 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
    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.

Source: Item 23 — RECEIPTS (FDD pages 66–252)

What This Means (2024 FDD)

According to Crisp & Green's 2024 Franchise Disclosure Document, the Minnesota Addendum to the Area Development Agreement is applicable if you are a resident of Minnesota or if your Crisp & Green business will be located in Minnesota.

This addendum modifies the standard Area Development Agreement to ensure compliance with Minnesota state laws. Specifically, it addresses litigation, termination notices, and waivers of liability. These modifications protect the developer's rights under Minnesota Statutes, Chapter 80C, and ensure access to procedures, forums, and remedies provided by Minnesota law.

For prospective Crisp & Green developers in Minnesota, this addendum provides additional legal safeguards. It clarifies that litigation cannot be forced outside of Minnesota, developers are entitled to a 90-day notice of termination (with 60 days to cure), and developers cannot be forced to sign releases that waive liabilities imposed by Minnesota statutes. These provisions offer greater protection and recourse under Minnesota law compared to the standard Area Development Agreement.

It is important for potential Crisp & Green developers to carefully review the Minnesota Addendum along with the Area Development Agreement to fully understand their rights and obligations under Minnesota law. Consulting with a legal professional is advisable to ensure a comprehensive understanding of the implications of these provisions.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.