Does the Minnesota Rider affect the fees that Fly To Fit franchisees pay?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
The franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400J. Also, a court will determine if a bond is required.
The Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5, and therefore the applicable provision of the Agreement is amended to state "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues."
3. Effective Date. This Rider is effective as of the Effective Date.
Source: Item 23 — RECEIPTS (FDD pages 44–134)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the Minnesota Rider addresses specific legal considerations for franchisees in Minnesota but does not directly discuss fees. The rider focuses on injunctive relief, compliance with Minnesota Statutes, Section 80C.17, Subd. 5 regarding limitations of claims, and the rider's effective date. These stipulations primarily concern legal processes and franchisee rights within the state.
While the Minnesota Rider does not explicitly alter any fee structures, it does ensure that certain clauses within the franchise agreement adhere to Minnesota law. For instance, it clarifies that a franchisee cannot consent to the franchisor obtaining injunctive relief and that a court will determine if a bond is required. Additionally, it modifies the Limitations of Claims section to comply with Minnesota Statutes, setting a three-year limit for commencing actions under Minnesota Statutes, Section 80C.17.
Prospective Fly To Fit franchisees in Minnesota should understand that this rider mainly serves to protect their legal rights and ensure compliance with state regulations. It does not appear to change the initial franchise fee or ongoing royalty fees. Franchisees should consult with legal counsel to fully understand the implications of the Minnesota Rider and how it affects their franchise agreement.
To gain a comprehensive understanding of all fees and costs associated with opening a Fly To Fit franchise, prospective franchisees should carefully review Item 5 and Item 7 of the FDD, and discuss any questions or concerns with the franchisor.