What is the exception to the release requirements for The Standardx franchise in Minnesota regarding assignment/transfer, according to the Rider?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Any release as a condition of renewal and/or assignment/transfer will not apply to the extent prohibited by law for claims arising under Minn. Rule 2860.4400D.
Minn. Rule Part 2860.4400J prohibits a franchisee from waiving rights to a jury trial; waiving rights to any procedure, forum or remedies provided by the laws of the jurisdiction; or consenting to liquidated damages, termination penalties or judgment notes. However, we and you will enforce these provisions in our Franchise Agreement to the extent the law allows.
Source: Item 18 — OTHER INCOME (LOSS), NET (FDD pages 187–399)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, any release required as a condition of assignment or transfer of the franchise will not apply if prohibited by law for claims arising under Minn. Rule 2860.4400D. This Minnesota rule addresses specific franchisee rights.
Specifically, Minn. Rule Part 2860.4400J prevents a franchisee from waiving their right to a jury trial, waiving rights to procedures, forums, or remedies provided by law, or consenting to liquidated damages, termination penalties, or judgment notes. However, The Standardx states that they will enforce these provisions in the Franchise Agreement to the extent the law allows.
In essence, The Standardx is stating that while they will generally require a release of claims during assignment or transfer, they cannot enforce a release that forces a franchisee to waive certain fundamental legal rights under Minnesota law. This ensures that franchisees retain their legal protections even when transferring or assigning their franchise.