In Minnesota, can Extreme Art Studio require a franchisee to assent to a general release?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
Minnesota Rule 2860.4400(D) prohibits a franchisor from requiring a franchisee to assent to a general release.
As a result, the FDD and the Franchise Agreement, which require you to sign a general release prior to renewing or transferring your Franchise, are hereby deleted from the Franchise Agreement, to the extent required by Minnesota law.
The following language will appear as a new paragraph of the Franchise Agreement:
- No Abrogation.
Pursuant to Minnesota Statutes, Section 80C.21, nothing in the dispute resolution section of this Agreement will in any way abrogate or reduce any of your rights as provided for in Minnesota Statutes, Chapter 80.C.
Source: Item 23 — RECEIPTS (FDD pages 49–214)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, Minnesota law prohibits Extreme Art Studio from requiring a franchisee to agree to a general release. Specifically, Minnesota Rule 2860.4400(D) explicitly prohibits franchisors from mandating that franchisees assent to a general release. This means that Extreme Art Studio cannot legally require its Minnesota franchisees to sign a document that broadly releases the company from potential liabilities.
To comply with Minnesota law, Extreme Art Studio states that any clauses in their standard Franchise Agreement that require a franchisee to sign a general release before renewing or transferring their franchise are considered deleted to the extent required by Minnesota law. This ensures that the Franchise Agreement adheres to Minnesota's franchise regulations and protects the rights of franchisees within the state.
Furthermore, the FDD includes a provision ensuring that nothing in the dispute resolution section of the agreement will reduce any rights provided to the franchisee under Minnesota Statutes, Chapter 80.C. This reinforces the protection of franchisee rights and ensures that Minnesota franchisees retain all legal rights and remedies available to them under state law, regardless of the standard terms in the franchise agreement.