What specific sections of the Kidokinetics Franchise Agreement are amended regarding enforceability under Minnesota law?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
ions 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 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.
Fee Deferral
Items 5 and 7 of the FDD and Section 5.1 of the Franchise Agreement are amended to state: Payment of the Initial Franchise Fee shall be deferred until Franchisor has satisfied its pre-opening obligations to Franchisee and Franchisee has commenced doing business.
NEW YORK
- The following information is added to the cover page of the Franchise Disclosure Document:
INFORMATION COMPARING FRANCHISORS IS AVAILABLE. CALL THE STATE ADMINISTRATORS LISTED IN EXHIBIT A OR YOUR PUBLIC LIBRARY FOR SERVICES OR INFORMATION. REGISTRATION OF THIS FRANCHISE BY NEW YORK STATE DOES NOT MEAN THAT NEW YORK STATE RECOMMENDS IT OR HAS VERIFIED THE INFORMATION IN THIS FRANCHISE DISCLOSURE DOCUMENT. IF YOU LEARN ANYTHING IN THIS FRANCHISE DISCLOSURE DOCUMENT IS UNTRUE, CONTACT THE FEDERAL TRADE COMMISSION AND THE APPROPRIATE STATE OR PROVINCIAL AUTHORITY. THE FRANCHISOR MAY, IF IT CHOOSES, NEGOTIATE WITH YOU ABOUT ITEMS COVERED IN THE FRANCHISE DISCLOSURE DOCUMENT.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, several sections of the Franchise Agreement are amended to comply with Minnesota law. Specifically, Sections 5.5.5 and 5.6.1 are amended to include the statement that "These provisions are not enforceable under Minnesota law." This means that certain clauses within these sections, which might otherwise apply, will not be legally valid or enforceable for franchisees operating in Minnesota. Additionally, 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, in accordance with Minnesota Statute 604.113.
Furthermore, the Franchise Agreement includes a new paragraph stating that nothing in the dispute resolution section will reduce any rights provided under Minnesota Statutes, Chapter 80.C, as per Minnesota Statutes, Section 80C.21. The FDD also clarifies that to the extent the Franchise Agreement conflicts with Minnesota law, Minnesota law will take precedence. This ensures that franchisees in Minnesota retain all the protections and rights afforded to them under state law, regardless of what the standard Franchise Agreement might otherwise stipulate.
Moreover, any clauses requiring a franchisee to waive rights to procedures, forums, or remedies provided by Minnesota law are deleted from agreements related to franchises offered and sold in Minnesota. However, the obligation in the Franchise Agreement relating to arbitration remains unaffected. The FDD and Franchise Agreement provisions that require franchisees to sign a general release before renewing or transferring their franchise are also deleted to the extent required by Minnesota law, due to Minnesota Rule 2860.4400(D), which prohibits franchisors from requiring franchisees to assent to a general release. These amendments collectively aim to ensure that the Kidokinetics franchise operations within Minnesota adhere strictly to the state's franchise laws, providing franchisees with the full scope of legal protections available.