Under what condition is Section 14.5 of The Standardx Franchise Agreement deleted?

According to The Standardx's 2025 Franchise Disclosure Document, Section 14.5 of the Franchise Agreement, concerning the waiver of punitive damages and jury trial, is deleted if required by the Minnesota Franchises Law. This deletion is specific to franchise agreements operating within Minnesota, ensuring compliance with state regulations regarding franchisee rights.

This provision protects franchisees in Minnesota from unknowingly waiving their rights to punitive damages or a jury trial, which are fundamental aspects of legal recourse. By deleting Section 14.5 when mandated by Minnesota law, The Standardx ensures that its franchise agreements do not conflict with state statutes designed to protect franchisees. This demonstrates The Standardx's willingness to adapt its standard agreement to comply with local laws, which can be a positive signal for prospective franchisees.

For a potential franchisee in Minnesota, this means that the franchise agreement will be modified to align with Minnesota's franchise laws, specifically regarding the waiver of punitive damages and jury trials. This ensures that franchisees retain their legal rights and are not subject to terms that could be deemed unfair or unenforceable under Minnesota law. It is important for prospective franchisees to understand these state-specific modifications and how they impact their rights and obligations under the franchise agreement.