In Minnesota, can Stretch Zone require a franchisee to assent to a general release?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Minnesota Rules 2860.4400(D) prohibits a Franchisor from requiring a Franchisee to assent to a general release.
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to the 2025 Stretch Zone FDD, Minnesota Rules prohibit Stretch Zone from requiring a franchisee to agree to a general release. This means that Stretch Zone franchisees in Minnesota are protected from being forced to sign away their rights to pursue future claims against the company. This protection is specifically outlined in Minnesota Rules 2860.4400(D).
This rule ensures that franchisees retain the ability to hold Stretch Zone accountable for any potential wrongdoings or breaches of contract. It prevents Stretch Zone from using its position to demand a blanket waiver of liability from franchisees, which could otherwise leave franchisees vulnerable.
This protection is a notable benefit for prospective Stretch Zone franchisees in Minnesota, as it aligns with the state's franchise laws designed to balance the power dynamic between franchisors and franchisees. It is common for states with franchise-specific laws to include provisions that protect franchisees' rights and limit franchisors' ability to impose overly restrictive or unfair terms.
In addition to the prohibition on general releases, the Minnesota Addendum to the Franchise Agreement also addresses other areas of potential conflict, such as litigation venues, jury trial waivers, and termination penalties, further safeguarding the rights of Stretch Zone franchisees in the state.