In Minnesota, what is the effect of the Franchise Disclosure Document or agreements on the rights of Spray Net franchisees as provided for in Minnesota Statute 80C?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
ance 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.
Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement. In addition, all development fees and initial payments by area developers shall be deferred until the first franchise under the multi-unit development agreement opens.
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 Spray Net's 2025 Franchise Disclosure Document, Minnesota Statute 80C.21 and Minnesota Rule 2860.4400(j) prevent Spray Net from requiring franchisees to conduct litigation outside of Minnesota, waive a jury trial, or consent to liquidated damages, termination penalties, or judgment notes. Furthermore, the Franchise Disclosure Document and agreements cannot reduce or eliminate any rights granted to the franchisee under Minnesota Statute 80C, or their rights to procedures, forums, or remedies provided by Minnesota law.
In Minnesota, Spray Net must comply with Minnesota Statute 80C.14 Subd. 3-5, which mandates that franchisees receive 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal, except in specific cases. Additionally, consent to the transfer of the franchise cannot be unreasonably withheld. Spray Net will also protect the franchisee's right to use trademarks and indemnify them from losses arising from claims related to the use of the Spray Net name.
Minnesota Rules 2860.4400(D) prohibits Spray Net from requiring a franchisee to agree to a general release. The franchisee cannot consent to Spray Net obtaining injunctive relief, although Spray Net may seek it, with a court determining if a bond is required. The Limitations of Claims section must also comply with Minnesota Statute 80C.17Subd.5.
Moreover, any statement or acknowledgment signed by a franchisee at the start of the franchise relationship cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Spray Net or its representatives. Due to Spray Net's financial condition, the Minnesota Department of Commerce requires a financial assurance, deferring all initial fees and payments until Spray Net completes its pre-opening obligations under the franchise agreement.