Must a Spray Net franchisee consent to a reduction in the scope of any covenant or provision?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
SPRAY-NET INC. MINNESOTA ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT
Minnesota Statute 80C.21 and Minnesota Rule 2860.4400(j) prohibit us from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Franchise Disclosure Document or agreement(s) can abrogate or reduce (1) any of the franchisee's rights as provided for in Minnesota Statute 80C, or (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
With respect to franchises governed by Minnesota law, we will comply with Minnesota Statute 80C.14 Subd. 3-5, which require (except in certain specified cases) that (1) a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the franchise agreement, and (2) that consent to the transfer of the franchise will not be unreasonably withheld.
Minnesota considers it unfair to not protect the franchisee's right to use the trademarks. Refer to Minnesota Statute 80C.14 Subd. 1(G). We will protect the franchisee's right to use the trademarks, service marks, trade names, logotypes, or other commercial symbols or indemnify the franchisee from any loss, costs, or expenses arising out of any claim, suit, or demand regarding the use of the name.
Minnesota Rules 2860.4400(D) prohibits us from requiring a franchisee to assent to a general release.
The franchisee cannot consent to us obtaining injunctive relief. We may seek injunctive relief. See Minnesota Rule 2860.4400(I) also, a court will determine if a bond is required.
The Limitations of Claims section must comply with Minnesota Statute 80C.17Subd.5.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to the 2025 Spray Net Franchise Disclosure Document, specifically the Minnesota Addendum, Minnesota Statute 80C.21 and Minnesota Rule 2860.4400(j) state that Spray Net cannot require franchisees to consent to liquidated damages, termination penalties, or judgment notes in the franchise agreement. Furthermore, the franchise agreement cannot reduce any of the franchisee's rights as provided for in Minnesota Statute 80C, or their rights to any procedure, forum, or remedies provided by the laws of the jurisdiction. This ensures that franchisees in Minnesota retain all rights granted to them by law and are not forced to accept terms that diminish those rights.
This protection is significant for prospective Spray Net franchisees in Minnesota because it prevents the franchisor from imposing unfair or overly restrictive conditions. For example, Spray Net cannot enforce a clause that demands the franchisee pay exorbitant penalties upon termination of the agreement or agree to waive their right to a jury trial. This provision aims to balance the power dynamic between the franchisor and franchisee, ensuring a fairer business relationship.
Moreover, the Minnesota Addendum highlights that Minnesota Rules 2860.4400(D) prohibits Spray Net from requiring a franchisee to assent to a general release. The franchisee also cannot consent to Spray Net obtaining injunctive relief, and a court will determine if a bond is required. These regulations collectively work to safeguard the franchisee's legal standing and prevent overreaching by the franchisor.
It is important for prospective Spray Net franchisees to carefully review the franchise agreement and any addenda specific to their state, such as the Minnesota Addendum. Understanding these protections can help franchisees make informed decisions and protect their interests throughout the duration of the franchise agreement. Franchisees should consult with a legal professional to fully understand their rights and obligations under the franchise agreement and applicable state laws.