Does the amendment to the My Salon Suite Franchise Agreement affect Item 5 of the FDD?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 13 of the FDD is hereby amended to state that we will protect your rights under the Franchise Agreement to use the Marks, or indemnify you from any loss, costs, or expenses arising out of any third-party claim, suit or demand regarding your use of the Marks, if your use of the Marks is in compliance with the provisions of the Franchise Agreement and our Franchise System standards.
Minnesota Rule 2860.4400(D) prohibits a franchisor from requiring a franchisee to assent to a general release.
As a result, the FDD and the Franchise Agreement, which require you to sign a general release prior to renewing or transferring your Franchise, are hereby deleted from the Franchise Agreement to the extent required by Minnesota law.
The following language will appear as a new paragraph of the FranchiseAgreement:
- 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.
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 (3) years after the cause of action accrues.
To the extent that the Franchise Agreement conflicts with Minnesota law, Minnesota law will prevail.
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to the 2025 My Salon Suite Franchise Disclosure Document, there is no explicit mention of an amendment affecting Item 5. However, the document includes amendments to Item 13, which concerns the franchisor's obligation to protect the franchisee's right to use the marks and indemnify them against losses arising from third-party claims related to the use of marks, provided the franchisee complies with the Franchise Agreement and System standards. This amendment clarifies the franchisor's responsibilities regarding trademark protection.
Additionally, there are amendments related to Minnesota law, specifically addressing prohibitions against requiring a franchisee to assent to a general release and ensuring that the dispute resolution section does not abrogate or reduce any rights provided under Minnesota Statutes. These amendments primarily affect franchisees operating in Minnesota, ensuring compliance with state-specific regulations.
While the provided excerpts do not directly address Item 5, prospective franchisees should review the full FDD and any related addenda to understand all amendments and their potential impact on various aspects of the franchise agreement, including fees and costs outlined in Item 5. It would be prudent to consult with the franchisor to confirm whether any unlisted amendments affect Item 5.