Does the Fitstop Franchise Disclosure Document or Franchise Agreement have the ability to reduce a franchisee's rights under Minnesota Statutes, Chapter 80C?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Item 17 of the Disclosure Document is supplemented by the following:
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- Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J prohibit us from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial or requiring you to consent to liquidated damages, termination, penalties or judgment notes. In addition, nothing in the Franchise Disclosure Document or Franchise Agreement can abrogate or reduce (1) any of your rights as provided for in Minnesota Statutes, Chapter 80C, or (2) your rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
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- Minnesota Rule 2860.4400D prohibits us from requiring you to assent to a release, assignment, novation, or waiver that would relieve any person from liability imposed by Minnesota Statute §§ 80vC.01 – 80C.22.
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- With respect to franchises governed by Minnesota law, we will comply with Minnesota Statute § 80C.14, subdivisions 3, 4, and 5 which requires (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.
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- Injunctive Relief. The franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See Minnesota Rules 2860.4400J.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the franchise agreement cannot reduce a franchisee's rights under Minnesota Statutes, Chapter 80C. Specifically, Item 23 supplements Item 17 of the disclosure document, stating that nothing in either the Franchise Disclosure Document or the Franchise Agreement can diminish any rights provided in Minnesota Statutes, Chapter 80C, or rights to procedures, forums, or remedies available under Minnesota law. This ensures that Minnesota franchisees retain all protections afforded to them under state law.
This provision is crucial for prospective Fitstop franchisees in Minnesota as it confirms that the franchise agreement will not override or diminish their legal rights under Minnesota franchise law. It provides assurance that franchisees will have access to the legal protections and remedies available to them under Minnesota Statutes, Chapter 80C, regardless of what the franchise agreement might otherwise state. This includes rights related to termination, non-renewal, and transfer of the franchise.
Furthermore, the FDD highlights that Fitstop must comply with specific subdivisions of Minnesota Statute § 80C.14, which mandate giving a franchisee 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal, except in certain specified cases. Additionally, consent to the transfer of the franchise cannot be unreasonably withheld. These stipulations provide additional security and clarity for franchisees operating in Minnesota, ensuring they are afforded fair treatment and sufficient notice in key areas of the franchise relationship.
In summary, the Fitstop franchise agreement is designed to comply with Minnesota law, ensuring that franchisees' rights are fully protected and that Fitstop adheres to the specific requirements of Minnesota's franchise statutes. This compliance offers a level of security and legal recourse for Fitstop franchisees in Minnesota, aligning with common practices in franchise law to protect franchisees' interests.