In Minnesota, is Deka Lash allowed to require a franchisee to agree to a general release?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
MINNESOTA ADDENDUM TO THE DISCLOSURE DOCUMENT
As to franchises governed by the Minnesota franchise laws, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
- Minn. Stat. §80C.21 and Minn. Rule 2860.4400(J) prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Franchise Disclosure Document or agreements can abrogate or reduce (1) any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
- With respect to franchises governed by Minnesota law, the franchisor will comply with Minn. Stat. Sec. 80C.14 Subds. 3, 4, and 5 which require (except in certain specified cases), that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the franchise agreement and that consent to the transfer of the franchise will not be unreasonably withheld.
- The franchisor will protect the franchisee's rights to use the trademarks, service marks, trade names, logotypes or other commercial symbols or indemnify the franchisee from any loss, costs or expenses arising out of any claim, suit or demand regarding the use of the name.
Minnesota considers it unfair to not protect the franchisee's right to use the trademarks. Refer to Minnesota Statutes 80C.12, Subd. 1(g).
- Minnesota Rules 2860.4400(D) prohibits a franchisor from requiring a franchisee to assent to a general release.
- The franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400J.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, Minnesota Rules prohibit Deka Lash from requiring a franchisee to agree to a general release. This protection is explicitly stated in the Minnesota Addendum to the Disclosure Document.
This means that if you are considering opening a Deka Lash franchise in Minnesota, you cannot be forced to sign a document that broadly releases Deka Lash from all potential future claims. This rule is in place to protect franchisees from unknowingly waiving their rights.
This addendum ensures that Minnesota franchisees retain their legal rights and recourse options, preventing Deka Lash from imposing potentially unfair or overreaching release agreements as a condition of franchising.