For Kidokinetics franchises in Minnesota, what happens to Franchise Agreement provisions that require a release relieving someone from 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 agree 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 considered void. This means that Kidokinetics franchisees in Minnesota cannot be forced to sign away their rights or release others from liabilities as defined under those specific Minnesota statutes.
Minnesota statutes 80C.01 to 80C.22 cover various aspects of franchise law in the state, including but not limited to franchise registration, disclosure requirements, and certain prohibited practices by franchisors. The FDD also states that Minnesota Statute Section 80C.21 and Minnesota Rule 2860.4400J prohibit Kidokinetics from requiring litigation to be conducted outside of Minnesota. Furthermore, 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 for by the laws of Minnesota.
This protection ensures that Minnesota franchisees retain their legal rights and remedies under state law, preventing Kidokinetics from enforcing terms that might otherwise limit their ability to seek legal recourse. This is a significant benefit for franchisees in Minnesota, as it provides an additional layer of legal security and protection against potentially overreaching contractual terms. Prospective franchisees should carefully review the Franchise Agreement and consult with legal counsel to fully understand their rights and obligations under Minnesota law.