Can All Team require a franchisee in Minnesota to consent to judgment notes?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
franchise.
MINNESOTA STATE LAW ADDENDUM
Notwithstanding anything contained in the foregoing Franchise Agreement and Franchise Disclosure Document ("FDD") to the contrary, the following provisions of the Minnesota Franchise Act shall apply to any franchise or franchisee located in the State of Minnesota, which shall control to the extent of any inconsistency:
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- MINN. STAT. SECTION 80C.21 and MINNESOTA RULES 2860.4400(J) prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Franchise Disclosure Document or agreement(s) can abrogate or reduce (1) any of the franchisee's rights as provided for in MINN. STAT.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if a franchisee is located in Minnesota, All Team is prohibited from requiring the franchisee to consent to judgment notes. This protection is explicitly stated in the Minnesota State Law Addendum.
This means that All Team franchisees in Minnesota cannot be forced to agree in advance to a judgment against them in the event of a dispute. This provision is designed to protect franchisees from potentially unfair or overreaching practices by the franchisor. It ensures that any legal disputes will be resolved through fair litigation processes, rather than through pre-arranged consent.
This addendum also states that Minnesota law prohibits All Team from requiring litigation to be conducted outside of Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages or termination penalties. Additionally, the franchisee cannot be required to assent to a general release, and the franchisee cannot consent to All Team obtaining injunctive relief.