Under what conditions do Face Foundrie Area Developers waive the Minnesota Franchise Act?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
er that they have placed, and will place, no reliance on any such discussions or writings. In accordance with the foregoing, it is understood and acknowledged that this Agreement, the attachments hereto, and the documents referred to herein constitute the entire Agreement between Franchisor and Area Developer concerning the subject matter hereof, and supersede any prior agreements, no other representations having induced Area Developer to execute this Agreement. Except for those permitted to be made unilaterally by Franchisor hereunder, no amendment, change, or variance from this Agreement shall be binding on either party unless mutually agreed to by the parties and executed by their authorized officers or agents in writing. Nothing in this Section 15 is intended to disclaim any of the information contained in Franchisor's Franchise Disclosure Document or its attachments or exhibits.
16. APPLICABLE LAW AND DISPUTE RESOLUTION
- 16.1 Governing Law*.* Except to the extent governed by the United States Trademark Act of 1946 (Lanham Act; 15 U.S.C. § 1050 et seq.), as amended, or the United States Arbitration Act (9 U.S.C. § 1 et seq.), this Agreement will be governed by the laws of the State of Minnesota without regard to its conflicts of laws provisions. The parties agree, however, that if Area Developer is not a resident of Minnesota, and if the Franchised Facial Bars are not located in Minnesota, then they hereby waive the provisions of the Minnesota Franchise Act, Minnesota Statutes, Section 80C.01, et seq. and the regulations promulgated thereunder. If the Minnesota Franchise Act would not otherwise apply to the franchise relationship created hereby, but there is a statute in the state in which the business franchised hereunder is located that specifically governs relationships between franchisees and franchisors, then that particular law will apply in lieu of the Minnesota Franchise Act.
- 16.2 Injunctive Relief and Attorneys' Fees.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, an Area Developer may waive the provisions of the Minnesota Franchise Act under specific conditions. If the Area Developer is not a resident of Minnesota, and the Franchised Facial Bars they develop are not located in Minnesota, they waive the protections afforded by the Minnesota Franchise Act, specifically Minnesota Statutes, Section 80C.01, et seq., and its associated regulations.
However, the FDD also states that if the Minnesota Franchise Act would not otherwise apply, but there is a state statute governing franchise relationships in the state where the franchised business is located, that state law will apply instead. This ensures that Area Developers are subject to some form of legal protection and regulation in their franchise relationship.
It's important to note that for franchisees and franchises subject to state franchise registration/disclosure laws in certain states, including Minnesota, no statement can waive claims under state franchise law or disclaim reliance on statements made by Face Foundrie. This provision supersedes any other term in any document related to the franchise, reinforcing protections for franchisees in those states.