Does the Desi District Franchise Disclosure Document abrogate any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
the franchise.
You have the right to file a lawsuit alleging a cause of action arising under the Maryland Franchise Law in any court of competent jurisdiction in the State of Maryland.
The Franchise Agreement provides for termination upon bankruptcy of the franchisee. This provision may not be enforceable under federal bankruptcy law.
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MINNESOTA ADDENDUM TO DISCLOSURE DOCUMENT
In the State of Minnesota only, this Disclosure Document is amended as follows:
- Minnesota Statutes, Section 80C.21 and Minnesota Rules 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 agreement(s) 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 Minnesota Statutes, Section 80C.14, Subd. 3-5, which require (except in certain specified cases) (1) 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 (2) 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 Statues, Section 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.
Source: Item 23 — RECEIPTS (FDD pages 52–140)
What This Means (2024 FDD)
According to the 2024 Desi District Franchise Disclosure Document, for franchisees in Minnesota, the document and franchise agreement cannot reduce or eliminate any rights granted under Minnesota Statutes, Chapter 80C. This ensures that Minnesota franchisees retain all protections and rights afforded to them under state law.
Specifically, Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prevent Desi District from requiring franchisees to engage in litigation outside of Minnesota, waive their right to a jury trial, or consent to liquidated damages, termination penalties, or judgment notes. Furthermore, Desi District must comply with Minnesota Statutes, Section 80C.14, Subd. 3-5, which mandates that franchisees receive a 90-day notice of termination (with 60 days to cure) and a 180-day notice for non-renewal, except in certain cases. The franchisor also cannot unreasonably withhold consent for the transfer of a franchise.
Additionally, Desi District is obligated to protect the franchisee's right to use trademarks and indemnify them against any claims arising from the use of the brand's commercial symbols. Franchisees also cannot be forced to agree to a general release, and they cannot consent to the franchisor obtaining injunctive relief. The FDD also states that any limitations of claims must comply with Minnesota Statutes, Section 80C.17, Subd. 5, which specifies that actions must be commenced within three years after the cause of action accrues.