Does Minnesota law allow Bambu to require the franchisee to consent to judgment notes?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Minnesota Statutes, Section 80C.21 and Minnesota Rule 2860.4400(J) prohibit Bambu from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring Franchisee to consent to liquidated damages, termination penalties, or judgment notes. In addition, nothing in the Franchise Disclosure Document or this Agreement can abrogate or reduce (1) any of Franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or (2) Franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. The above language has been included in this Agreement as a condition to registration. Bambu and Franchisee do not agree with the above language and believes that each of the provisions of the Agreement are fully enforceable. Bambu and Franchisee intend to fully enforce
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Minnesota Statutes, Section 80C.21 and Minnesota Rule 2860.4400(J) explicitly prohibit Bambu from requiring franchisees to consent to judgment notes. This protection is part of a broader set of regulations in Minnesota that aim to safeguard franchisee rights. These regulations also prevent Bambu from mandating that litigation occur outside of Minnesota or requiring franchisees to waive their right to a jury trial.
This legal stipulation is included in the franchise agreement as a condition of registration in Minnesota. However, Bambu states that it does not agree with this language and believes that all provisions of the agreement are fully enforceable. Despite this disagreement, the clause is present to comply with Minnesota law. Bambu also states its intent to enforce all provisions of the agreement, relying on federal pre-emption under the Federal Arbitration Act.
For a prospective Bambu franchisee in Minnesota, this means that they cannot be compelled to consent to judgment notes as a condition of the franchise agreement. This provides a level of protection against potentially unfavorable legal outcomes. However, it's important to note Bambu's stated position on the enforceability of these clauses, suggesting a possible intent to challenge these protections where possible.