Can Beehive Homes require a franchisee to consent to judgment notes in Minnesota?
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 Beehive Homes' 2025 Franchise Disclosure Document, Minnesota statutes prevent Beehive Homes from requiring franchisees to consent to judgment notes. Specifically, Minnesota Statutes Section 80C.21 and Minnesota Rules 2860.4400(J) explicitly prohibit Beehive Homes from mandating that franchisees agree to judgment notes. This protection ensures that franchisees operating in Minnesota are not forced into agreements that could unfairly prejudice them in potential legal disputes.
This provision is part of a broader set of regulations designed to protect franchisees' rights within Minnesota. These regulations also prevent Beehive Homes from requiring litigation to occur outside of Minnesota, enforcing jury trial waivers, or imposing liquidated damages or termination penalties. Furthermore, the franchise agreement cannot diminish any rights granted to the franchisee under Minnesota Statutes, Chapter 80C, or their access to legal procedures, forums, or remedies available under Minnesota law.
For a prospective Beehive Homes franchisee in Minnesota, this means that they cannot be compelled to sign agreements that include consenting to judgment notes, which could be detrimental in the event of a dispute. This protection aligns with Minnesota's aim to provide a fair and balanced legal environment for franchise operations, safeguarding franchisees from potentially overreaching contractual obligations. Franchisees should ensure that their franchise agreement adheres to these Minnesota-specific regulations to fully benefit from these protections.