Can the Degree Wellness Disclosure Document or Franchise Agreement reduce a franchisee's rights to procedures, forums, or remedies provided by Minnesota law?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
ks, service marks, trade names, logotypes, or other commercial symbols, and/or indemnify the franchisee from any loss, costs, or expenses arising out of any claim, suit, or demand regarding the use of the same.
With respect to the disclosures in Item 17 of the Disclosure Document
- (i) The Disclosure Document and Franchise Agreement provisions name Florida law as the governing law, and Florida as the choice of forum and jurisdiction and venue. Minn. Stat. § 80C.21 and Minn. Rule 2860.4400J prohibit us from requiring litigation arising from claims under Minnesota franchise laws (Minn. Stat. §§80C.01 through 80C.22) to be conducted outside Minnesota, requiring waiver of a jury trial or requiring you to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Disclosure Document or Franchise Agreement can abrogate or reduce any of your rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
- (ii) With respect to franchises governed by Minnesota law, we will comply with Minn. Stat. § 80C.14, subds.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, neither the Disclosure Document nor the Franchise Agreement can diminish a franchisee's rights to procedures, forums, or remedies as provided by Minnesota law. This protection is explicitly stated in Item 23, reinforcing Minnesota Statutes Chapter 80C and Minnesota Rule 2860.4400J, which prevent Degree Wellness from requiring litigation arising from Minnesota franchise laws to be conducted outside of Minnesota, mandating a waiver of jury trial, or requiring consent to liquidated damages, termination penalties, or judgment notes. This ensures that Minnesota franchisees retain all rights and legal avenues available to them under state law.
Furthermore, Degree Wellness is committed to complying with specific Minnesota statutes regarding franchise termination and transfer. Franchisees in Minnesota must receive at least 90 days' notice of termination, including a 60-day period to address any issues, and 180 days' notice for non-renewal of the franchise agreement. Additionally, Degree Wellness cannot unreasonably withhold consent for the transfer of a franchise if the proposed transferee meets the current qualifications and standards required of franchisees. These provisions provide significant protections to Minnesota franchisees, ensuring fair treatment in termination and transfer scenarios.
To further protect franchisees, the Minnesota Securities Commissioner requires a financial assurance condition due to Degree Wellness's financial condition. This condition mandates that all initial fees and payments owed by franchisees are deferred until Degree Wellness completes its pre-opening obligations under the franchise agreement. This safeguard ensures that franchisees are not burdened with financial obligations until Degree Wellness has fulfilled its commitments, reducing the financial risk for new franchisees in Minnesota. Additionally, Minnesota Rule 2860.4400J prohibits termination fees, and the FDD explicitly states that any provisions regarding termination fees are removed with respect to franchises governed by Minnesota law.