Can a franchisee consent to All States M.E.D. obtaining injunctive relief in Minnesota?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
- The franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400J.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, if a franchise is governed by Minnesota law, the franchisee cannot consent to All States M.E.D. obtaining injunctive relief. However, All States M.E.D. retains the right to seek injunctive relief in Minnesota. This stipulation is outlined in the Minnesota Addendum to the Disclosure Document, Franchise Agreement, and Area Development Agreement, which takes precedence over any conflicting terms in those documents. This protection is afforded to franchisees under Minnesota Rules 2860.4400J.
This provision means that while All States M.E.D. can pursue injunctive relief against a franchisee in Minnesota, the franchisee cannot be compelled to agree in advance to such an action. This ensures that the franchisee retains the right to contest the injunction in court. It is a specific protection under Minnesota franchise law designed to balance the rights between the franchisor and franchisee.
This type of addendum is common in franchise agreements to comply with state-specific franchise laws, which often provide additional protections to franchisees beyond what is offered at the federal level. Prospective All States M.E.D. franchisees in Minnesota should carefully review the Minnesota Addendum to understand their rights and obligations under state law.