Under what conditions does the Minnesota anti-waiver provision apply to prospective Remax franchisees?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
Any limitations of claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state 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.
Any provisions in the Franchise Agreement that constitute Acknowledgements, as defined in the NASAA Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgements adopted on September 18, 2022 and effective January 1, 2023 ("SOP"), shall not apply to prospective franchisees who are subject to the anti-waiver provision of the Minnesota Franchises Law.
The provisions of this Addendum only apply if the jurisdictional requirements of the Minnesota Franchises Law are met independently without reference to this Addendum and to the extent they are then valid requirements of the statute.
Source: Item 6 — The amount charged for the Insufficient Funds Processing Fee in Minnesota is $30. (FDD pages 464–473)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the Minnesota anti-waiver provision applies to prospective franchisees if the jurisdictional requirements of the Minnesota Franchises Law are met independently, without relying on the addendum itself to satisfy those requirements, and to the extent that these requirements are currently valid under the statute. This means that the protections afforded by Minnesota law against waiving certain rights or claims are only available if the franchisee's situation independently falls under Minnesota's franchise regulations.
Specifically, the anti-waiver provision ensures that no statement, questionnaire, or acknowledgment signed by a franchisee at the start of their franchise relationship can waive claims under state franchise law, including claims of fraud in the inducement. It also prevents franchisees from disclaiming reliance on statements made by Remax or its representatives. This provision takes precedence over any conflicting terms in the franchise agreement.
Furthermore, any acknowledgements within the Franchise Agreement, as defined by the NASAA Statement of Policy, will not apply to prospective franchisees protected by the Minnesota Franchises Law's anti-waiver provision. This ensures that franchisees cannot inadvertently waive their rights through standard acknowledgements or questionnaires. In essence, Remax franchisees in Minnesota receive additional protection, ensuring they cannot unknowingly surrender their legal rights under Minnesota franchise law.