factual

Which sections of the Fly Fitness Franchise Agreement are deleted due to inconsistencies with Minnesota Rules 2860.4400(D)?

Fly_Fitness Franchise · 2024 FDD

Answer from 2024 FDD Document

Minnesota Rules 2860.4400(D) prohibits a franchisor from requiring a franchisee's assent to a release other than as part of a voluntary settlement of disputes. To the extent of any inconsistencies with the Minnesota Rules requirement contained in Sections 5.2.5 or 16.3.6 of the Franchise Agreement, such inconsistent provisions are hereby deleted.

Source: Item 22 — CONTRACTS (FDD pages 44–45)

What This Means (2024 FDD)

According to Fly Fitness's 2024 Franchise Disclosure Document, Minnesota Rules 2860.4400(D) prohibits Fly Fitness from requiring a franchisee's assent to a release other than as part of a voluntary settlement of disputes. Due to this rule, any inconsistencies found in Sections 5.2.5 or 16.3.6 of the Fly Fitness Franchise Agreement are deleted for franchisees in Minnesota.

This means that Fly Fitness franchisees in Minnesota cannot be forced to sign a general release of claims against the franchisor unless it is part of a voluntary settlement. A general release typically waives all claims a franchisee may have against Fly Fitness, which could include past, present, and future disputes. This amendment protects the franchisee's right to pursue legal action against the franchisor if necessary.

For prospective Fly Fitness franchisees in Minnesota, this is a beneficial modification to the standard franchise agreement. It ensures that they retain their legal rights and are not compelled to release Fly Fitness from potential liabilities unless they willingly agree to do so as part of settling a dispute. This provides an added layer of protection for franchisees operating in Minnesota.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.