What specific Minnesota rule prohibits Embassy Suites from requiring a franchisee to assent to a release, assignment, novation, or waiver that would relieve any person from liability imposed by Minnesota franchise law?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The following language will appear at the end of Subsection 16.8 of the Franchise Agreement:
- "Minnesota Rule 2860.4400D prohibits Franchisor from requiring a Franchisee to assent to a release, assignment, novation, or waiver that would relieve any person from liability imposed by Minnesota franchise law. This Subsection 16.8 does not require you to assent to any release, assignment, novation, or waiver that would relieve any person from liability imposed by Minnesota Statutes 1973 Supplement, sections 08C.01 to 80C.22, as amended, which also provides that the voluntary settlement of disputes is not barred."
Source: Item 22 — CONTRACTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, Minnesota Rule 2860.4400D specifically prohibits Embassy Suites from requiring a franchisee to agree to a release, assignment, novation, or waiver that would relieve anyone from liability under Minnesota franchise law. This protection ensures that franchisees operating in Minnesota retain their rights and remedies under Minnesota Statutes 1973 Supplement, sections 08C.01 to 80C.22, as amended.
This rule is explicitly mentioned in the Minnesota Addendum to the Franchise Agreement. The language referencing Minnesota Rule 2860.4400D will be included at the end of Subsection 16.8 of the Franchise Agreement, clarifying that the franchisee is not required to waive any rights or releases related to liability under Minnesota franchise law. However, the voluntary settlement of disputes is not barred.
This provision is beneficial for prospective Embassy Suites franchisees in Minnesota as it prevents the franchisor from including clauses in the franchise agreement that could potentially limit their legal rights and protections under Minnesota franchise law. It ensures that franchisees maintain their ability to seek legal recourse if necessary, reinforcing the franchisor's accountability and adherence to state regulations.