What does the Fly To Fit public offering statement contain in Minnesota?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
ibits a franchisor from requiring a franchisee to assent to a general release.
- 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, which states "No action may be commenced pursuant to this Section more than three years after the cause of action accrues."
THESE FRANCHISES HAVE BEEN REGISTERED UNDER THE MINNESOTA FRANCHISE ACT. REGISTRATION DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE COMMISSIONER OF COMMERCE OF MINNESOTA OR A FINDING BY THE COMMISSIONER THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING.
THE MINNESOTA FRANCHISE ACT MAKES IT UNLAWFUL TO OFFER OR SELL ANY FRANCHISE IN THIS STATE WHICH IS SUBJECT TO REGISTRATION
WITHOUT FIRST PROVIDING TO THE PROSPECTIVE FRANCHISEE, AT LEAST 7 DAYS PRIOR TO THE EXECUTION BY THE PROSPECTIVE FRANCHISEE OF ANY BINDING FRANCHISE OR OTHER AGREEMENT, OR AT LEAST 7 DAYS PRIOR TO THE PAYMENT OF ANY CONSIDERATION, BY THE FRANCHISEE, WHICHEVER OCCURS FIRST, A COPY OF THIS PUBLIC OFFERING STATEMENT, TOGETHER WITH A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE FRANCHISE. THIS PUBLIC OFFERING STATEMENT CONTAINS A SUMMARY ONLY OF CERTAIN MATERIAL PROVISIONS OF THE FRANCHISE AGREEMENT. THE CONTRACT OR AGREEMENT SHOULD BE REFERRED TO FOR AN UNDERSTANDING OF ALL RIGHTS AND OBLIGATIONS OF BOTH THE FRANCHISOR AND THE FRANCHISEE.
NEW YORK ADDENDUM TO DISCLOSURE DOCUMENT
In the State of New York only, this Disclosure Document is amended as follows:
1.
Source: Item 23 — RECEIPTS (FDD pages 44–134)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the franchise is registered under the Minnesota Franchise Act, but this registration does not signify approval, recommendation, or endorsement by the Commissioner of Commerce of Minnesota. Nor does it indicate that the Commissioner has verified the truthfulness, completeness, or lack of misleading information in the document.
The Minnesota Franchise Act prohibits offering or selling any franchise subject to registration in the state without first providing the prospective franchisee with a copy of the public offering statement and all proposed agreements relating to the franchise. This must be done at least 7 days before the franchisee executes any binding agreement or makes any payment, whichever comes first. The FDD itself only contains a summary of certain material provisions of the franchise agreement, and the actual contract should be consulted for a complete understanding of the rights and obligations of both Fly To Fit and the franchisee.
Furthermore, the franchisee cannot consent to Fly To Fit obtaining injunctive relief, although Fly To Fit may seek it. The court will determine if a bond is required. Any limitations on claims must comply with Minnesota Statutes, Section 80C.17, Subd. 5, so the agreement is amended to state that no action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues. These stipulations are part of the Minnesota Rider to the Franchise and Multi-Unit Development Agreement.