What effect does a statement, questionnaire, or acknowledgement signed by a Degree Wellness franchisee have on disclaiming reliance on any statement made by the franchisor in Minnesota?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
E. Section 6 of the Franchise Agreement is supplemented by the following: Based upon the franchisor's financial condition, the Minnesota Securities Commissioner has required a financial assurance condition. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a statement, questionnaire, or acknowledgement signed by a franchisee does not waive claims or disclaim reliance on franchisor statements in Minnesota. Specifically, any such document cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor, franchise seller, or anyone acting on the franchisor's behalf. This protection is in place to ensure that franchisees in Minnesota retain their rights under the law, regardless of any agreements they may sign when starting the franchise relationship.
This provision is significant for prospective Degree Wellness franchisees in Minnesota because it protects them from inadvertently giving up their legal rights. It ensures that franchisees can still pursue claims against the franchisor if they believe they were misled or defrauded, even if they signed documents that appear to waive those rights. This protection is particularly important in the context of franchise agreements, which are often complex and can be difficult for franchisees to fully understand.
The Minnesota Amendment to the Franchise Agreement reinforces these protections by stating that nothing in the agreement or Franchise Disclosure Document can reduce a franchisee's rights under Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided by Minnesota law. This ensures that Degree Wellness franchisees in Minnesota have the full scope of legal rights and protections afforded to them under state law, regardless of any conflicting terms in the franchise agreement.