Can All Team require a franchisee to consent to judgment notes in Minnesota?

According to All Team's 2025 Franchise Disclosure Document, if a franchise is located in Minnesota, All Team is prohibited from requiring the franchisee to consent to judgment notes. Specifically, Minnesota Statute Section 80C.21 and Minnesota Rules 2860.4400(J) take precedence over any conflicting terms in the franchise agreement or FDD. This ensures that franchisees in Minnesota are not forced to agree to judgment notes as a condition of their franchise agreement.

This protection is part of a broader set of regulations under the Minnesota Franchise Act designed to safeguard franchisees' rights. These regulations also prevent All Team from requiring litigation to occur outside of Minnesota, mandating jury trial waivers, or imposing liquidated damages or termination penalties on Minnesota franchisees. The aim is to create a fairer balance of power between the franchisor and franchisee within the state.

For a prospective All Team franchisee in Minnesota, this means that certain standard clauses in the franchise agreement that might be applicable in other states will not be enforced in Minnesota if they conflict with state law. It is important for franchisees to be aware of these state-specific protections, as they can significantly impact their rights and obligations under the franchise agreement. Franchisees should consult with legal counsel to fully understand their rights under Minnesota law.