In Minnesota, can Beehive Homes require the franchisee to consent to judgment notes?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Minnesota Statutes, 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 Minnesota Statutes, Chapter 80C or (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) explicitly prohibit Beehive Homes from requiring franchisees to consent to judgment notes. This protection is in place to safeguard the franchisee's rights within the franchise agreement.
This means that Beehive Homes cannot include any clause in their franchise agreement that would force a franchisee in Minnesota to agree in advance to a judgment against them in case of a dispute. This provision ensures that franchisees have the right to contest any claims made against them through proper legal channels.
Furthermore, the FDD states that nothing in the document or agreements can reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or the franchisee's rights to any procedure, forum, or remedies provided by the laws of the jurisdiction. This reinforces the protection afforded to Minnesota franchisees under state law, ensuring they are not subject to unfair or overreaching terms in the franchise agreement.