What are the parties doing with the Minnesota addendum and the Punch King Fitness Franchise Agreement?

Based on the 2024 Punch King Fitness FDD, the franchise agreement includes addenda to comply with state laws. Specifically, with respect to the Minnesota addendum, Section XXIII(D) of the North Dakota addendum states that it amends the franchise agreement, indicating that any claim arising under the Minnesota Franchise Law may be brought in the state of North Dakota. The parties are signing the addendum simultaneously with the Franchise Agreement to which it is attached.

Several states require franchisors to include addenda that modify the franchise agreement to comply with their specific franchise laws. These addenda often address issues such as termination, renewal, transfer, and dispute resolution. The terms of the addendum will control in the event of inconsistencies with the franchise agreement.

For a prospective Punch King Fitness franchisee, this means that the standard franchise agreement is subject to specific modifications and clarifications based on the state in which the franchise is located. Franchisees should carefully review any state-specific addenda to understand their rights and obligations under local laws, as these addenda can significantly alter the terms of the franchise agreement. It is important to note that the excerpt references the Minnesota Franchise Law within the North Dakota addendum, indicating potential implications for franchisees in North Dakota related to claims arising under Minnesota law.