What specific rights of a Degree Wellness franchisee in Minnesota cannot be waived?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
A.
Minn.
Stat. § 80C.21 and Minn.
Rule 2860.4400J prohibit Franchisor from requiring litigation from claims arising under Minnesota franchise laws (Minn.
Stat. §§80C.01
- through 80C.22) to be conducted outside Minnesota, requiring a waiver of jury trial, and prohibits Franchisor from requiring the Franchise Owner to consent to liquidated damages, termination penalties or judgment notes.
In addition, nothing in the Agreement or Franchise Disclosure Document can abrogate or reduce any of Franchise Owner's rights as provided for in Minnesota Statutes, Chapter 80C, or Franchise Owner's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
- B.
With respect to franchises governed by Minnesota law, Franchisor will comply with Minn.
Stat. § 80C.14, subds. 3, 4, and 5, which require, except in certain specified cases, that (1) Franchise Owner be given ninety (90) days' notice of termination (with sixty (60) days to cure) and one-hundred eighty (180) days' notice for non-renewal of the Agreement and (2) consent to the transfer of a franchise by Franchise Owner will not be unreasonably withheld whenever the franchisee to be substituted meets the present qualifications and standards required of the franchisees by us.
- C.
Minnesota considers it unfair to not protect Franchise Owner's right to use the trademarks.
Refer to Minnesota Statute 80C.12 Subd. 1(G).
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, several rights of a franchisee in Minnesota cannot be waived. Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J prevent Degree Wellness from requiring franchisees to litigate claims arising under Minnesota franchise laws outside of Minnesota. Franchisees also cannot be forced to waive their right to a jury trial. Additionally, Degree Wellness is prohibited from requiring franchisees to consent to liquidated damages, termination penalties, or judgment notes.
Furthermore, the Franchise Agreement and Franchise Disclosure Document cannot reduce or eliminate any rights a franchisee has under Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided by Minnesota law. This ensures that Minnesota franchisees retain all protections afforded to them under state law.
Minnesota Rule 2860.4400D specifically prohibits Degree Wellness from requiring a franchisee to agree to a release, assignment, novation, waiver, or estoppel that would relieve any person from liability imposed by the Minnesota Franchise Law. However, this rule does not prevent the voluntary settlement of disputes. This means that while franchisees cannot be forced to waive their rights, they can voluntarily agree to settlements.
In practice, these protections ensure that Degree Wellness franchisees in Minnesota have strong legal recourse and cannot be forced into unfair agreements that limit their rights under state law. This provides a more secure and predictable business environment for franchisees operating in Minnesota.