Under what conditions do the parties to the Face Foundrie franchise agreement waive the provisions of the Minnesota Franchise Act?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties agree, however, that if Franchisee is not a resident of Minnesota, and if the Facial Bar is 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.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the franchisor and franchisee can waive the provisions of the Minnesota Franchise Act under specific conditions. If the franchisee is not a resident of Minnesota, and the Face Foundrie facial bar is not located in Minnesota, both parties agree to waive the protections afforded by the Minnesota Franchise Act (Minnesota Statutes, Section 80C.01, et seq.) and its associated regulations.
However, the Face Foundrie FDD also states that if the Minnesota Franchise Act would not otherwise apply, but there is a state law where the franchised business is located that specifically governs franchisor-franchisee relationships, then that state law will take precedence over the Minnesota Franchise Act. This ensures that franchisees are protected by some form of legal oversight in their business dealings.
This waiver provision has significant implications for prospective Face Foundrie franchisees. If they reside and operate their franchise outside of Minnesota, they will not be able to rely on the specific protections of Minnesota franchise law. Instead, they will be subject to the laws of their own state, which may be more or less favorable to franchisees. Therefore, it is crucial for potential franchisees to understand the franchise laws in their state and how they compare to Minnesota law before signing the franchise agreement.