factual

In Minnesota, is Nothing Bundt Cakes allowed to require a franchisee to assent to a general release?

Nothing_Bundt_Cakes Franchise · 2025 FDD

Answer from 2025 FDD Document

EXHIBIT J TO THE DISCLOSURE DOCUMENT FRANCHISEE DISCLOSURE ACKNOWLEDGMENT STATEMENT

THIS ACKNOWLEDGEMENT SHALL NOT BE COMPLETED BY YOU, AND WILL NOT APPLY, IF THE OFFER OR SALE OF THE FRANCHISE IS SUBJECT TO THE STATE FRANCHISE DISCLOSURE LAWS IN THE STATES OF CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, OR WISCONSIN.

Source: Item 23 — RECEIPTS (FDD pages 93–309)

What This Means (2025 FDD)

According to the 2025 Nothing Bundt Cakes Franchise Disclosure Document, if the offer or sale of a franchise is subject to state franchise disclosure laws in Minnesota, the Franchisee Disclosure Acknowledgment Statement should not be completed by the franchisee and will not apply. This acknowledgment typically confirms that the franchisee isn't relying on unauthorized statements or promises from the franchisor or its brokers.

This suggests that Nothing Bundt Cakes may not be able to enforce certain acknowledgments or releases in Minnesota that could limit a franchisee's rights or remedies. This is because Minnesota has franchise disclosure laws in place to protect franchisees. These laws often restrict franchisors from including provisions that unduly limit a franchisee's ability to pursue legal claims or that require them to waive certain rights.

Prospective Nothing Bundt Cakes franchisees in Minnesota should consult with a legal professional to fully understand their rights and obligations under the franchise agreement and applicable state laws. This is particularly important to ensure that any releases or acknowledgments they are asked to sign are compliant with Minnesota law and do not unfairly prejudice their interests.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.