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In Minnesota, can Beehive Homes require the franchisee to consent to liquidated damages?

Q: In Minnesota, can Beehive Homes require the franchisee to consent to liquidated damages?

- 1. 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)

Beehive_Homes Franchise · 2025 FDD

Answer from 2025 FDD Document

1. 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 Beehive Homes' 2025 Franchise Disclosure Document, if you are opening a Beehive Homes franchise in Minnesota, Beehive Homes is prohibited from requiring you to consent to liquidated damages. Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) explicitly state this prohibition.

This means that the franchise agreement cannot force you to agree in advance to pay a specific amount of damages in the event of a breach of contract or other violation. This protection is in place to ensure that franchisees are not subjected to unfair or excessive penalties.

Furthermore, the FDD states that nothing in the disclosure document or agreements can reduce any of your rights as provided for in Minnesota Statutes, Chapter 80C, or your rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. This reinforces the protection against being forced to consent to liquidated damages and ensures that your legal rights within Minnesota are fully preserved.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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