What Minnesota statutes does Stretch Zone's Commissioner of Commerce require the Franchise Agreement to be consistent with?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
The Commissioner of Commerce for the State of Minnesota requires that certain provisions contained in the Franchise Agreement be amended to be consistent with the Minnesota Franchise Act, Minn.
Stat. §§ 80.01 et seq.,(the "Minnesota Franchise Act") and of the Rules and Regulations promulgated under the Minnesota Franchise Act.
To the extent that the Franchise Agreement contains provisions that are inconsistent with the following, the provisions are amended:
- (a) Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit the Franchisor 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 Statutes, Chapter 80C or (2) the Franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
- (b) With respect to Franchises governed by Minnesota law, the Franchisor will comply with Minnesota Statutes, Section 80C.14, Subd. 3-5, which requires (except in certain specified cases) (1) that 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 the consent to the transfer of the Franchise will not be unreasonably withheld.
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 Stretch Zone's 2025 Franchise Disclosure Document, the Commissioner of Commerce for the State of Minnesota mandates that certain provisions within the Franchise Agreement be consistent with the Minnesota Franchise Act, specifically Minn. Stat. §§ 80.01 et seq., and the associated Rules and Regulations. This requirement ensures that the franchise agreement adheres to Minnesota law.
Several specific statutes and rules are highlighted for compliance. Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prevent Stretch Zone from requiring litigation to occur outside of Minnesota, enforcing jury trial waivers, or compelling franchisees to consent to liquidated damages, termination penalties, or judgment notes. Additionally, the franchise agreement cannot diminish any franchisee rights provided under Minnesota Statutes, Chapter 80C, or their rights to procedures, forums, or remedies available under Minnesota law.
Furthermore, for franchises governed by Minnesota law, Stretch Zone must comply with Minnesota Statutes, Section 80C.14, Subd. 3-5. This statute requires that franchisees receive a 90-day notice of termination (with 60 days to cure) and a 180-day notice for non-renewal, except in specific cases. It also stipulates that consent to the transfer of a franchise cannot be unreasonably withheld. These stipulations aim to protect franchisees by ensuring fair treatment and adherence to Minnesota's franchise regulations.