What Minnesota statute limits the Insufficient Funds Fee for Kidokinetics franchises?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
nesota law will prevail.
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- Sections 5.5.5 and 5.6.1 of the franchise agreement are amended by the addition of the following language: "These provisions are not enforceable under Mi
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, for franchises governed by Minnesota law, Item 6 of the FDD and Section 5.6.3 of the Franchise Agreement are amended to limit the Insufficient Funds Fee to $30 per occurrence. This amendment is made pursuant to Minnesota Statute 604.113.
This means that if a Kidokinetics franchisee in Minnesota has a customer payment returned due to insufficient funds, the fee they can charge to the customer is capped at $30 per occurrence. This limit is set by Minnesota state law, providing a level of consumer protection.
This type of state-specific amendment is common in franchise agreements to ensure compliance with local laws and regulations. Prospective Kidokinetics franchisees in Minnesota should be aware of this limitation on insufficient funds fees, as it directly impacts their revenue and customer relations.