In Minnesota, can Best Brains require a franchisee to consent to judgment notes?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
Minn. Stat. §80C.21 and Minn. Rule 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 agreements 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 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, if a franchise is governed by Minnesota franchise laws, Best Brains is prohibited from requiring the franchisee to consent to judgment notes. This protection is explicitly stated in the Minnesota Addendum within the FDD.
This means that Best Brains franchisees in Minnesota cannot be forced to agree in advance to a judgment against them in case of a dispute. Minnesota law aims to protect franchisees by ensuring they retain their rights to a fair legal process without being compelled to consent to potentially unfavorable outcomes.
This provision ensures that Minnesota franchisees maintain their legal rights and are not subjected to terms that could unfairly prejudice them in legal disputes with Best Brains. Prospective franchisees in Minnesota should take comfort in knowing that state law prevents Best Brains from including such consent requirements in their franchise agreements.