What rights of a Deka Lash franchisee in Minnesota cannot be abrogated or reduced by the Franchise Disclosure Document or agreements?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
the Maryland Securities Commissioner has required a financial assurance which is being satisfied by posting a surety bond which we filed with the Commissioner."
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.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the Minnesota Addendum to the Disclosure Document specifies certain rights of a franchisee that cannot be reduced or abrogated by the Franchise Disclosure Document or any related agreements. Specifically, nothing in the Franchise Disclosure Document or agreements can diminish (1) any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or (2) a franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. This provision ensures that Minnesota franchisees retain all protections and legal avenues afforded to them under state law.
Furthermore, Minnesota Statutes §§80C.21 and Minnesota Rule 2860.4400(J) explicitly prohibit Deka Lash from requiring franchisees to conduct litigation outside of Minnesota, waive their right to a jury trial, or consent to liquidated damages, termination penalties, or judgment notes. These regulations are designed to protect franchisees from potentially unfair or onerous contractual terms that could limit their legal recourse.
Additionally, Minnesota Rules 2860.4400(D) prevents Deka Lash from requiring a franchisee to agree to a general release, and franchisees cannot consent to Deka Lash obtaining injunctive relief, although Deka Lash retains the right to seek such relief. These stipulations further safeguard the franchisee's rights and ensure a more balanced legal relationship between the franchisor and franchisee within the state of Minnesota.