factual

What is the significance of Minnesota Rules 2860.4400(D) in the context of the Deer Solution Franchise Agreement amendments?

Deer_Solution Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchise Agreement on the same date as the Franchise Agreement was executed.

Deer Solution Franchising LLC Franchisor: Franchisee:
Signature Signature
Name and Title (please print) Name (please print)
Dated Dated Signature Name (please print) Dated

MINNESOTA FRANCHISE AGREEMENT AMENDMENT

Amendments to the Deer Solution Franchise Agreement

In recognition of the requirements of the Minnesota Statutes, Chapter 80C. and Minnesota Franchise Rules, Chapter 2860, the parties to the attached Deer Solution Franchising LLC Franchise Agreement (the "Franchise Agreement"), as follows:

  1. Article 14.C. of the Franchise Agreement, under the heading "Conditions for Approval of Transfer," subarticle 14.C(6) is supplemented with the addition of the following language:

; provided, however, that all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of the Minnesota Franchise Act, Minn. Stat. Section 80C.14 et seq. and Minnesota Rules 2860.4400(D), shall remain in force; it being the intent of this provision that the non-waiver provisions of the Minnesota Rules 2860.4400(D) be satisfied; and

Minnesota law provides a franchisee with certain termination and non-renewal rights. Minn. Stat. Sect. 80C.14 Subdivisions 3, 4, and 5 require, except in certain specified cases, that franchisee be given 180 days-notice of nonrenewal of this Agreement by Franchisor.

  1. Article 15.B. of the Franchise Agreement, under the heading "Conditions for Renewal," subarticle 15.B(8) is supplemented with the addition of the following language:

; provided, however, that all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of the Minnesota Franchise Act, Minn. Stat. Section 80C.14 et seq. and Minnesota Rules 2860.4400(D), shall remain in force; it being the intent of this provision that the non-waiver provisions of the Minnesota Rules 2860.4400(D) be satisfied; and

Minnesota law provides a franchisee with certain termination and non-renewal rights. Minn. Stat. Sect.

Source: Item 23 — RECEIPTS (FDD pages 55–246)

What This Means (2025 FDD)

According to Deer Solution's 2025 Franchise Disclosure Document, Minnesota Rules 2860.4400(D) is significant because it contains non-waiver provisions that protect the franchisee's rights. The Minnesota Franchise Agreement Amendment explicitly states that all rights and causes of action arising in the franchisee's favor under the Minnesota Franchise Act and Minnesota Rules 2860.4400(D) remain in force. This means Deer Solution cannot enforce terms that would force a franchisee to waive these rights.

Specifically, the amendment addresses Article 14.C, concerning conditions for approval of transfer, and Article 15.B, regarding conditions for renewal, by adding language to ensure the franchisee retains all rights and causes of action under the Minnesota Franchise Act and Rule 2860.4400(D). This addition emphasizes that the non-waiver provisions of Rule 2860.4400(D) are intended to be satisfied, reinforcing the franchisee's protections during transfer and renewal scenarios.

Furthermore, Item 17 of the FDD, which covers renewal, termination, transfer, and dispute resolution, is supplemented to state that it shall not provide for a prospective general release of claims against Deer Solution that may be subject to the Minnesota Franchise Law. This is because Minnesota Rule 2860.4400D prohibits Deer Solution from requiring a franchisee to agree to a general release, further safeguarding the franchisee's legal standing and rights within the franchise agreement.

Disclaimer: This information is extracted from the 2025 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.