In Minnesota, can a Kidokinetics franchisee waive claims under applicable state franchise law at the commencement of the franchise relationship?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
MINNESOTA
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.
Minn. Rule Part 2860.4400J prohibits a franchisee from waiving his rights to a jury trial or waiving his rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction, or consenting to liquidated damages, termination penalties or judgment notes.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to the 2024 Kidokinetics Franchise Disclosure Document, a franchisee in Minnesota cannot waive claims under applicable state franchise law at the commencement of the franchise relationship. Specifically, any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by Kidokinetics or its representatives. This provision takes precedence over any conflicting terms in any document executed in connection with the franchise.
This protection ensures that franchisees retain their legal rights under Minnesota franchise law, preventing Kidokinetics from enforcing waivers that might otherwise limit a franchisee's ability to pursue legal remedies. This is particularly important in the context of franchise agreements, where there may be an imbalance of power between the franchisor and franchisee.
Furthermore, the FDD highlights several Minnesota-specific regulations that protect franchisees. For example, any provision requiring a franchisee to agree to a release, assignment, novation, or waiver that relieves any person from liability imposed by Minnesota Statutes, Sections 80C.01 to 80C.22, is void if it violates such law. Additionally, Minnesota law prohibits Kidokinetics from requiring litigation to occur outside of Minnesota and prevents franchisees from waiving their right to a jury trial or rights to procedures, forums, or remedies provided by Minnesota law.
These stipulations reflect Minnesota's commitment to safeguarding franchisee rights and ensuring fair practices within the franchise system. Prospective Kidokinetics franchisees in Minnesota should be aware of these protections, as they provide a legal foundation for addressing potential disputes or violations of franchise law.