Does Minnesota law allow for voluntary settlement of disputes regarding Healthsource Chiropractic franchises?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
Minnesota Rule part 2860.4400D prohibits requiring a franchisee to assent to a release, assignment, novation, or waiver that would relieve any person from liability imposed by the Minnesota Franchise Law, provided that this rule shall not bar the voluntary settlement of disputes.
Accordingly, Item 17 of the Disclosure Document and Sections 2.4(c) and 14.5(f) of the Franchise Agreement are hereby revised to exclude any claims arising under the Minnesota Franchise law from any general release of liability that you or may be required to sign in favor of us, our directors, officers, agents, and employees, and our affiliates and their directors, officers, agents, and employees, as a condition to renew the Franchise Agreement, or transfer the Franchise Agreement.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to the 2025 Healthsource Chiropractic Franchise Disclosure Document, Minnesota law does not prevent franchisees from voluntarily settling disputes. However, Minnesota Rule part 2860.4400D prohibits requiring a franchisee to agree to a release, assignment, novation, or waiver that would relieve any person from liability imposed by the Minnesota Franchise Law.
This means that while Healthsource Chiropractic cannot force a franchisee to sign away their rights under Minnesota franchise law, the franchisee can choose to voluntarily settle a dispute. This protects the franchisee from being coerced into unfavorable agreements while still allowing for resolution through voluntary negotiation.
The FDD clarifies that Item 17 of the Disclosure Document and Sections 2.4(c) and 14.5(f) of the Franchise Agreement are revised to exclude any claims arising under the Minnesota Franchise law from any general release of liability that a franchisee may be required to sign to renew or transfer the Franchise Agreement. This revision ensures compliance with Minnesota law and protects the franchisee's rights.