For Kidokinetics franchises in Minnesota, what happens to Franchise Agreement provisions that require franchisees to release liability imposed by Minnesota Statutes, Sections 80C.01 to 80C.22?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Despite anything to the contrary in the Franchise Agreement, the following provisions will supersede and apply to all Franchises offered and sold in the State of Minnesota:
Any provision in the Franchise Agreement which would require you 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.
Minnesota Statute Section 80C.21 and Minnesota Rule 2860.4400J prohibit the franchisor from requiring litigation to be conducted outside of Minnesota.
In addition, nothing in the FDD 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 Minnesota.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, any provision in the Franchise Agreement that requires a franchisee in Minnesota to release, assign, create a novation, or waive any liability imposed by Minnesota Statutes, Sections 80C.01 to 80C.22, will be void to the extent that the contractual provision violates such law. This means that Kidokinetics cannot enforce any clause in its standard agreement that would force a Minnesota franchisee to give up their legal rights or protections under the state's franchise laws.
This protection ensures that Minnesota franchisees retain all rights and remedies available to them under Minnesota law, regardless of what the standard Kidokinetics franchise agreement might otherwise stipulate. This is further reinforced by the statement that nothing in the FDD or Franchise Agreement can reduce any of your rights as provided for in Minnesota Statutes, Chapter 80C, or your rights to any procedure, forum, or remedies provided by the laws of Minnesota.
In practical terms, this means a prospective Kidokinetics franchisee in Minnesota can be confident that they are not giving up their legal rights by signing the franchise agreement. They retain the ability to pursue legal action and seek remedies under Minnesota law if Kidokinetics violates the franchise agreement or engages in unfair practices. This provides an added layer of security and protection for franchisees operating in Minnesota.