Can Beehive Homes require a franchisee to consent to liquidated damages under Minnesota law?

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 a franchisee to consent to liquidated damages. This means that Beehive Homes cannot include any clause in their franchise agreement that forces a franchisee to agree to a predetermined amount of damages in the event of a breach of contract. This protection is specifically designed to safeguard the rights of franchisees operating in Minnesota.

This statute also prevents Beehive Homes from requiring litigation to be conducted outside of Minnesota or demanding a waiver of a jury trial. Furthermore, the franchise agreement cannot diminish any rights granted to the franchisee under Minnesota Statutes, Chapter 80C, or their entitlement to any procedure, forum, or remedies provided by Minnesota law. These regulations collectively ensure that Minnesota franchisees are afforded specific legal protections and rights within the franchise relationship.

For a prospective Beehive Homes franchisee in Minnesota, this means that certain standard clauses that might appear in franchise agreements in other states are unenforceable in Minnesota. It is crucial for potential franchisees to be aware of these protections and to ensure that the franchise agreement complies with Minnesota law. This information is particularly relevant when reviewing the Franchise Disclosure Document and the franchise agreement with legal counsel.