Can Pearce Bespoke require a franchisee in Minnesota to assent to a general release?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) In accordance with Minnesota Rules 2860.4400(D), we cannot require you to assent to a general release.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, franchisees in Minnesota are protected from being required to assent to a general release. The FDD includes an addendum specifically for Minnesota, which outlines amendments to the standard franchise agreement to ensure compliance with the Minnesota Franchise Act.
Specifically, Item 22 of the FDD is amended for Minnesota franchisees to include a statement that "In accordance with Minnesota Rules 2860.4400(D), we cannot require you to assent to a general release." This means that Pearce Bespoke cannot legally force a franchisee in Minnesota to sign a document that broadly releases the company from all potential liabilities.
This protection is significant for prospective franchisees as it ensures they retain their legal rights and recourse against Pearce Bespoke, should any issues arise during the franchise term. This addendum reflects Minnesota's commitment to protecting franchisees and ensuring fair franchising practices within the state.