In Minnesota, what specific rights does Minnesota Statute 80C provide to Spray Net franchisees?
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.
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 provides several protections for franchisees. Specifically, the franchise agreement cannot reduce any rights provided to the franchisee under Minnesota Statute 80C, or their rights to any procedure, forum, or remedies provided by Minnesota law.
Additionally, Minnesota Statute 80C.14 Subd. 3-5 requires that Spray Net provide a franchisee with 90 days' notice of termination, including 60 days to cure any issues, and 180 days' notice for non-renewal of the franchise agreement, except in certain specified cases. The franchisor also cannot unreasonably withhold consent for the transfer of the franchise.
Minnesota law also protects the franchisee's right to use Spray Net's trademarks, service marks, trade names, logotypes, or other commercial symbols. Spray Net is obligated to protect this right and indemnify the franchisee from any losses, costs, or expenses arising from claims related to the use of the Spray Net name. Furthermore, Minnesota Statute 80C.17Subd.5 requires that the Limitations of Claims section comply with its regulations. Finally, Minnesota Statute 80C.21 and Minnesota Rule Part 2860.4400J, prohibit Spray Net 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.