What specific aspects of the Desi District franchise agreement does the Minnesota Rider amend?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1. Definitions. Capitalized terms used but not defined in this Rider have the meanings given in the Agreement. The "Minnesota Act" means Minnesota Statutes, Sections 80C.01 to 80C.22.
- 2. Amendments. The Agreement is amended to comply with the following:
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. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400J. Also, a court will determine if a bond is required.
The Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5, and therefore the applicable provision of the Agreement is amended to state "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues."
Source: Item 23 — RECEIPTS (FDD pages 52–140)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, the Minnesota Rider amends the franchise agreement to comply with Minnesota law. Specifically, Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prevent Desi District from requiring litigation to occur outside of Minnesota, mandating a waiver of jury trial, or obligating the franchisee to consent to liquidated damages, termination penalties, or judgment notes. The rider also ensures that no part of the Franchise Disclosure Document or agreements can reduce any franchisee rights provided in Minnesota Statutes, Chapter 80C, or their rights to procedures, forums, or remedies under Minnesota law.
For franchises governed by Minnesota law, Desi District must adhere to Minnesota Statutes, Section 80C.14, Subd. 3-5. This requires providing a franchisee with 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal, except in specific cases. Additionally, consent to the transfer of the franchise cannot be unreasonably withheld. Desi District is also obligated to protect the franchisee's rights to use trademarks, service marks, trade names, logotypes, and other commercial symbols, and to indemnify the franchisee from any costs or expenses related to claims regarding the use of the name, as Minnesota considers it unfair not to protect these trademark rights under Minnesota Statutes, Section 80C.12, Subd. 1(g).
Furthermore, Minnesota Rules 2860.4400(D) prohibits Desi District from requiring a franchisee to agree to a general release. The franchisee cannot consent to Desi District obtaining injunctive relief; however, Desi District may seek injunctive relief, subject to Minn. Rules 2860.4400J, and a court will determine if a bond is required. The Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5, amending the agreement to state that "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues."
In practical terms, this means that Desi District franchisees in Minnesota have additional protections under state law that are explicitly incorporated into their franchise agreement through the rider. These protections cover areas such as dispute resolution, termination and renewal conditions, intellectual property rights, and liability releases. Prospective franchisees should carefully review the Minnesota Rider to fully understand their rights and obligations under the franchise agreement within the state.