Can Degree Wellness require a franchisee to sign a general release as a condition of renewal in Minnesota?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (iv) The Disclosure Document and Franchise Agreement state that you must sign in favor of us, officers, directors, agents, and employees, and our affiliates and their officers, directors, agents, and employees, as a condition to renew or transfer your franchise, a release from liability of all claims that you may have against us, our officers, directors, agents, employees, or our affiliates or their officers, directors, agents, and employees, as a condition to renew or transfer your franchise, a release from liability of all claims that you may have against us and/or our officers, directors, agents, and employees under the Franchise Agreement or any other agreement.
Minnesota Rule part 2860.4400D prohibits requiring a franchisee to assent to a release, assignment, novation, or waiver that would relieve any person from liability imposed by the Minnesota Franchise Law, provided that this rule shall not bar the voluntary settlement of disputes.
Accordingly, Item 17 of the Disclosure Document and Sections 2.4(c) and 14.5(f) of the Franchise Agreement are hereby revised to exclude any claims arising under the Minnesota Franchise law from any general release of liability that you or may be required to sign in favor of us, our directors, officers, agents, and employees, and our affiliates and their directors, officers, agents, and employees, as a condition to renew the Franchise Agreement, or transfer 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, Minnesota franchisees are afforded certain protections under Minnesota franchise law. While Degree Wellness's standard agreement requires franchisees to sign a general release of claims as a condition of renewal, this requirement is modified for Minnesota franchisees.
Specifically, Minnesota Rule 2860.4400D prohibits Degree Wellness from requiring a franchisee to agree to a release, assignment, novation, or waiver that would relieve any person from liability imposed by the Minnesota Franchise Law. However, this rule does not prevent the voluntary settlement of disputes. To comply with Minnesota law, Degree Wellness amends its franchise agreement to exclude any claims arising under the Minnesota Franchise Law from any general release of liability that a franchisee may be required to sign as a condition of renewal.
Therefore, Degree Wellness can require a general release as a condition of renewal in Minnesota, but this release cannot include claims arising under Minnesota Franchise Law. This ensures that Minnesota franchisees retain their rights and remedies under state franchise law, while still allowing for the resolution of other potential claims through a general release.