For Kidokinetics franchises in Minnesota, what happens to FDD and Franchise Agreement clauses requiring a general release prior to renewal or transfer?

According to Kidokinetics's 2024 Franchise Disclosure Document, Minnesota Rule 2860.4400(D) prohibits Kidokinetics from requiring a franchisee to agree to a general release. Therefore, any clauses in the Franchise Disclosure Document (FDD) and the Franchise Agreement that require a franchisee to sign a general release before renewing or transferring their Kidokinetics franchise are deleted from the Franchise Agreement to the extent required by Minnesota law. This ensures that franchisees in Minnesota are not forced to waive their rights through a general release as a condition of renewal or transfer, providing them with greater protection under Minnesota law.

This modification is significant for prospective Kidokinetics franchisees in Minnesota because it protects their legal rights and remedies. General releases typically require franchisees to waive any potential claims against the franchisor, which could include claims related to misrepresentation, breach of contract, or other grievances. By deleting these clauses, Minnesota law ensures that franchisees retain the ability to pursue legal action if they believe Kidokinetics has violated their rights. This aligns with the broader aim of Minnesota Statutes, Sections 80C.01 to 80C.22, which seeks to protect franchisees from unfair contractual provisions.

Furthermore, the FDD clarifies that any provision in the Franchise Agreement requiring a franchisee to assent to a release, assignment, novation, or waiver that would relieve any person from liability imposed by Minnesota Statutes, Sections 80C.01 to 80C.22, will be void to the extent that such contractual provision violates such law. This reinforces the state's commitment to safeguarding franchisees' rights and ensuring that they are not subjected to terms that undermine the protections afforded by Minnesota franchise law. This also means that franchisees operating in Minnesota will have the full protection of Minnesota law, regardless of what the standard Kidokinetics franchise agreement might otherwise stipulate.