In Minnesota, can the Learningrx franchise disclosure document, Franchise Agreement, or Area Developer Agreement reduce a franchisee's rights under Minnesota Statutes, Chapter 80C?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Minn. Stat. Sec. 80C.21 and Minn. Rule Part 2860.4400J, may prohibit us from requiring litigation to be conducted outside Minnesota. In addition, nothing in the franchise disclosure document, Franchise Agreement or Area Developer 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 the jurisdiction.
In accordance with Minnesota Rule 2860.4400J, to the extent required by law, the franchise disclosure document, Franchise Agreement and Area Developer Agreement are modified so that we cannot require you to waive your rights to a jury trial or to waive rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction, or to consent to liquidated damages, termination penalties, or judgment notes; provided that this part shall not bar an exclusive arbitration clause.
Minnesota Rule 2860.4400D prohibits us from requiring you to assent to a general release. The franchise disclosure document, Franchise Agreement and Area Developer Agreement are modified accordingly, to the extent required by Minnesota law.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, the franchise disclosure document, Franchise Agreement, and Area Developer Agreement cannot reduce a franchisee's rights as provided for in Minnesota Statutes, Chapter 80C. The FDD states that nothing in those documents 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 the jurisdiction. This ensures that Minnesota franchisees retain all rights granted to them under Minnesota law, regardless of what the franchise agreement might otherwise state.
Furthermore, the Learningrx FDD indicates that Minnesota Rule 2860.4400J modifies the franchise disclosure document, Franchise Agreement, and Area Developer Agreement to the extent required by law. This modification ensures that Learningrx cannot require a franchisee to waive their right to a jury trial, waive rights to any procedure, forum, or remedies provided by the laws of the jurisdiction, or consent to liquidated damages, termination penalties, or judgment notes. However, this rule does not bar an exclusive arbitration clause.
Additionally, Minnesota Rule 2860.4400D prohibits Learningrx from requiring a franchisee to assent to a general release. The franchise disclosure document, Franchise Agreement, and Area Developer Agreement are modified accordingly, to the extent required by Minnesota law. This provision further protects the franchisee's rights under Minnesota law.