Can the Healthsource Chiropractic Franchise Disclosure Document abrogate any of Franchise Owner's rights as provided for in Minnesota Statutes, Chapter 80C?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
ate that the franchisor will protect the franchisee's right to use the trademarks, service marks, trade names, logotypes, or other commercial symbols, and/or indemnify the franchisee from any loss, costs, or expenses arising out of any claim, suit, or demand regarding the use of the same.
With respect to the disclosures in Item 17 of the Disclosure Document
- (i) The Disclosure Document and Franchise Agreement provisions name Ohio law as the governing law, and Ohio as the choice of forum and jurisdiction and venue. Minn. Stat. § 80C.21 and Minn. Rule 2860.4400J prohibit us from requiring litigation arising from claims under Minnesota franchise laws (Minn. Stat. §§80C.01 through 80C.22) to be conducted outside Minnesota, requiring waiver of a jury trial or requiring you to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Disclosure Document or Franchise Agreement can abrogate or reduce any of your rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
- (ii) With respect to franchises governed by Minnesota law, we will comply with Minn. Stat. § 80C.14, subds. 3, 4, and 5, which require, except in certain specified cases, (1) that a franchisee be given 90 days' notice of termination (with 60 days to cure), and 180 days' notice for non-renewal of the Franchise Agreement and (2) that consent to the transfer of a franchise will not be unreasonably withheld whenever the franchisee to be substituted meets the present qualifications and standards required of the franchisees by us.
- (iii) Minn. Rule Part 2860.4400J prohibits you from waiving your rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, the document cannot abrogate or reduce any rights to any procedure, forum, or remedies provided by Minnesota law. Specifically, Minnesota Rule Part 2860.4400J prohibits franchisees from waiving their rights to any procedure, forum, or remedies provided by the laws of the jurisdiction.
Furthermore, Healthsource Chiropractic must protect the franchisee's right to use trademarks, service marks, trade names, logotypes, or other commercial symbols, and indemnify the franchisee from any losses arising from claims regarding their use, as required by Minnesota law. The FDD also states that Healthsource Chiropractic will comply with Minn. Stat. § 80C.14, subds. 3, 4, and 5, regarding termination and non-renewal notices, and the consent to the transfer of a franchise.
Item 17 of the Healthsource Chiropractic Disclosure Document names Ohio law as the governing law, and Ohio as the choice of forum and jurisdiction and venue. However, the FDD clarifies that Minnesota Statutes prohibit Healthsource Chiropractic from requiring litigation arising from claims under Minnesota franchise laws to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring consent to liquidated damages, termination penalties, or judgment notes.