Does the Minnesota Addendum to the Punch King Fitness FDD alter the standard franchise agreement?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
tate 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.
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- Receipts--Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earlier of the first personal meeting, ten (10) business days before the execution of the franchise or other agreement, or the payment of any consideration that relates
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NORTH DAKOTA ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT
The following additional disclosures are required by the North Dakota Franchise Investment Law:
Covenants restricting or prohibiting your right to compete after the termination or expiration of your franchise agreement are generally considered unenforceable in the State of North Dakota.
Any provision of the franchise agreement restricting jurisdiction or venue to a forum outside the State of North Dakota or requiring the application of the laws of a state other than North Dakota is void.
Any mediation, if necessary, will take place at the American Arbitration Association office nearest your business Site.
Any provision of the franchise agreement requiring you to waive the right to a trial by jury is void.
Any provision of the franchise agreement requiring you to waive exemplary or punitive damages is void.
Any provision of the franchise agreement requiring you to consent to a statute of limitations that is shorter than the applicable North Dakota statute of limitations is void.
Source: Item 22 — CONTRACTS (FDD pages 56–215)
What This Means (2024 FDD)
Based on the 2024 Punch King Fitness FDD excerpts, there is no Minnesota addendum included. The document does include addenda for North Dakota, Indiana, and Wisconsin, which modify the franchise agreement to comply with those states' franchise laws. These addenda address issues such as restrictions on competition, jurisdiction, venue, jury trial waivers, punitive damages, statutes of limitations, and the enforceability of certain termination clauses.
Because a Minnesota addendum is not included, it's unclear whether the standard Punch King Fitness franchise agreement would be altered for franchisees in Minnesota. Without a specific addendum, the standard terms of the franchise agreement would likely apply, but there might be state laws or court decisions that could supersede certain provisions, similar to what is noted in the Indiana and Wisconsin addenda.
A prospective Punch King Fitness franchisee in Minnesota should inquire with the franchisor about whether a Minnesota-specific addendum exists or if any state laws would modify the standard franchise agreement. It would also be prudent to seek legal counsel to understand the enforceability of the franchise agreement's terms within Minnesota.