In Minnesota, can Kidokinetics require a franchisee to assent to a general release?

According to Kidokinetics's 2024 Franchise Disclosure Document, Minnesota Rule 2860.4400(D) prohibits Kidokinetics from requiring a franchisee to assent to a general release. As a result, any part of the FDD and the Franchise Agreement that requires a franchisee to sign a general release prior to renewing or transferring their franchise is deleted from the Franchise Agreement, to the extent required by Minnesota law. This ensures that Kidokinetics franchisees in Minnesota are not forced to waive their legal rights through a general release.

This protection is significant for prospective Kidokinetics franchisees in Minnesota because it prevents the franchisor from imposing a blanket waiver of liability. General releases can be broad and may unintentionally waive rights or claims that a franchisee is not even aware of at the time of signing. By prohibiting such releases, Minnesota law aims to protect franchisees from potentially unfair or overreaching contractual terms.

It is important for potential Kidokinetics franchisees in Minnesota to carefully review the Franchise Agreement and any related documents with legal counsel to ensure full compliance with Minnesota law. Franchisees should also be aware of their rights under Minnesota Statutes, Chapter 80C, which provides additional protections and remedies. This addendum to the Franchise Agreement reflects Kidokinetics's commitment to adhering to state-specific regulations and ensuring fair business practices within its franchise system.