What does Minnesota Statutes, Section 80C.21 state regarding the abrogation of franchisee rights in the dispute resolution section of the Kidokinetics Franchise Agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
r to renewing or transferring your Franchise, are hereby deleted from the Franchise Agreement, to the extent required by Minnesota law.
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- The following language will appear as a new paragraph of the Franchise Agreement:
- No Abrogation. Pursuant to Minnesota Statutes, Section 80C.21, nothing in the dispute resolution section of this Agreement will in any way abrogate or reduce any of your rights as provided for in Minnesota Statutes, Chapter 80.C.
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- Minnesota Statute Section 80C.17 states that no action for a violation of Minnesota Statutes, Sections 80C.01 to 80C.22 may be commenced more than three years after the cause of action accrues. To the extent that the Franchise Agreement conflicts with Minnesota law, Minnesota 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 Minnesota law."
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- Item 6 of the FDD and Section 5.6.3 of the Franchise Agreement is hereby amended to limit the Insufficient Funds Fee to $30 per occurrence pursuant to Minnesota Statute 604.113.
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- 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 statem
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Minnesota Statutes Section 80C.21 ensures that the dispute resolution section of the Franchise Agreement does not diminish any rights granted to franchisees under Minnesota Statutes, Chapter 80C. This means that even if the franchise agreement contains clauses about how disputes are handled, those clauses cannot take away the legal rights that Minnesota law provides to franchisees.
This protection is significant for prospective Kidokinetics franchisees in Minnesota because it ensures that they retain all the legal protections afforded to them under Minnesota franchise law, regardless of what the franchise agreement might say about dispute resolution. For example, if Minnesota law provides a specific avenue for resolving disputes or certain remedies, the franchise agreement cannot force the franchisee to waive those rights.
Furthermore, Minnesota Statute Section 80C.21 and Minnesota Rule 2860.4400J also prohibit Kidokinetics from requiring litigation to be conducted outside of Minnesota. This prevents Kidokinetics from forcing a franchisee into a distant or inconvenient legal venue. Additionally, Minnesota Rule 2860.4400J prohibits Kidokinetics from requiring a franchisee to waive their right to a jury trial or to waive their rights to any procedure, forum, or remedies provided by Minnesota law, or consenting to liquidated damages, termination penalties, or judgment notes.
In practical terms, this means that Kidokinetics franchisees in Minnesota have stronger legal protections than franchisees in some other states. They can be confident that their rights under Minnesota law will be upheld, even if the franchise agreement contains conflicting language. This provides an added layer of security and recourse for franchisees in the event of a dispute with Kidokinetics.