What Minnesota Statute governs NSF checks for a Stretch Zone franchise?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
ction 80C.21 and Minnesota Rules 2860.4400(J) prohibit the Franchisor from requiring litigation to b
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 91–99)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, Minnesota Statute 604.113 governs NSF checks. This statute puts a cap of $30 on service charges for NSF checks. This information is part of an addendum to Item 7, which concerns the estimated initial investment for a Stretch Zone franchise.
For a prospective Stretch Zone franchisee in Minnesota, this means that if a customer pays with a check that is returned due to non-sufficient funds, the franchisee can only charge a service fee up to $30. This limit is set by Minnesota state law and protects customers from excessive fees on returned checks.
It is important for franchisees to be aware of this legal limitation to ensure compliance and avoid potential legal issues. Franchisees should also consult with legal counsel to fully understand their rights and obligations under Minnesota law.