Under Minnesota Rules, can Fly Fitness require a franchisee to assent to a general release?

According to Fly Fitness's 2024 Franchise Disclosure Document, Minnesota Rules prevent Fly Fitness from requiring a franchisee to assent to a general release. Specifically, Minnesota Rules 2860.4400(D) states that Fly Fitness cannot mandate that franchisees agree to a general release. This protection is explicitly mentioned in an amendment to the Fly Fitness Franchise Agreement required by the State of Minnesota.

This rule protects franchisees from being forced to sign away their rights to potential future claims against Fly Fitness as a condition of the franchise agreement. However, the FDD also notes that 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 ensure compliance with Minnesota law, Fly Fitness amends its standard franchise agreement for franchisees operating in Minnesota. This amendment specifically deletes any provisions in Sections 5.2.5 or 16.3.6 of the Franchise Agreement that are inconsistent with the Minnesota rule regarding general releases. This means that while the standard Fly Fitness agreement might contain language about releases, those sections are voided for Minnesota franchisees to the extent they conflict with the state's regulations.