Legal Question in Consumer Law in Minnesota

I signed a contract with a Minnesota Brazilian Jiu-Jitsu academy. I was looking to cancel though, but got caught a little off guard with the amount of the cancellation fee. They let me know that in order to cancel my membership, I will have to pay 1/3 of what’s left on my contract / membership fee (I’d have to pay a little over $1,000 to cancel). Since this caught me off guard (kind of a $1,000 surprise to me), I asked them to send a copy of my contract to me so I could see for myself.

Yeah, I signed the contract. And yes, it states it’s for 24 months. But, according to the MN statute 325G.26, the contract is not valid since it is for a term of longer than 18 months. In order for it to be valid for a term longer than 18 months, I would have needed to be a member for at least 6 months prior to signing that contract (which I was not).

All of this being said, does this mean that the contract I signed is null and void? Does this mean I don’t have to pay the $1,000 cancellation fee?

Asked on 12/24/20, 1:32 pm

1 Answer from Attorneys

David Anderson Anderson Business Law LLC

Cite the statute

Send them cancel letter

Tell them you’ll countersue if they try to collect

Have me write a letter if you wish $500 fee

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Answered on 12/24/20, 3:08 pm

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