Can the Focus Cfo Disclosure Document or Franchise Agreement reduce a franchisee's rights under Minnesota Statutes, Chapter 80C?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Item 17 of the Disclosure Document is amended as follows:
- a. With respect to franchises governed by Minnesota law, we will comply with Minn. Stat. Sec. 80C.14, Subd. 3, 4, and 5, which require, except in certain specified cases, that you be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal of the Franchise Agreement.
- b. Item 17 shall not provide for a prospective general release of claims against us that may be subject to the Minnesota Franchise Law. Minn. Rule 2860.4400D, which prohibits a franchisor from requiring a franchisee to assent to a general release.
- c. Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibit us from requiring litigation to be conducted outside of Minnesota. In addition, nothing in this Disclosure Document or Franchise Agreement can abrogate or reduce any of your rights as provided for in Minnesota Statutes, Chapter 80C, or your rights to any procedure, forum or remedies provided for by the laws of the jurisdiction.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, the franchise agreement cannot override or diminish a franchisee's rights as protected by Minnesota Statutes, Chapter 80C. Specifically, for franchises governed by Minnesota law, Focus Cfo will adhere to Minn. Stat. Sec. 80C.14, Subd. 3, 4, and 5, which mandates that franchisees receive 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal, except in certain specified cases.
Furthermore, the FDD states that Item 17 of the Disclosure Document will not include any prospective general release of claims against Focus Cfo that may be subject to the Minnesota Franchise Law, referencing Minn. Rule 2860.4400D, which prohibits franchisors from requiring such a release. Additionally, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prevent Focus Cfo from mandating that litigation be conducted outside of Minnesota.
This protection of franchisee rights is reinforced by the statement that nothing in the Disclosure Document or Franchise Agreement can abrogate or reduce any franchisee rights as provided for in Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided by the laws of the jurisdiction. This ensures that Minnesota franchisees retain all rights and protections afforded to them under state law, regardless of the terms outlined elsewhere in the franchise agreement.