Is Fly To Fit allowed to require a franchisee to consent to termination penalties in Minnesota?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
In the State of Minnesota only, this Disclosure Document is amended as follows:
- Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Franchise Disclosure Document or agreement(s) can abrogate or reduce (1) any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C or (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 44–134)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) explicitly prohibit Fly To Fit from requiring a franchisee to consent to termination penalties. This protection is part of a broader set of regulations in Minnesota designed to safeguard franchisee rights. These regulations also prevent Fly To Fit from mandating that litigation be conducted outside of Minnesota or requiring a franchisee to waive their right to a jury trial.
This means that any clause within the Fly To Fit franchise agreement that stipulates termination penalties for franchisees operating in Minnesota is unenforceable. The Minnesota Addendum to the Disclosure Document clarifies that the franchise agreement cannot override or diminish any rights granted to the franchisee under Minnesota Statutes, Chapter 80C, or any legal procedures, forums, or remedies provided by Minnesota law.
For a prospective Fly To Fit franchisee in Minnesota, this is a significant benefit. It ensures that they cannot be penalized with termination fees, providing a degree of financial security and legal protection. This addendum reflects Minnesota's commitment to protecting franchisees and ensuring fair franchising practices within the state.