In Minnesota, can Best Brains require franchisees to consent to judgment notes?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
MINNESOTA ADDENDUM TO THE DISCLOSURE DOCUMENT
As to franchises governed by the Minnesota franchise laws, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
- 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, Minnesota franchise laws protect franchisees from being required to consent to judgment notes. Specifically, if any terms in the standard disclosure document are inconsistent with Minnesota law, the Minnesota terms will take precedence. This means Best Brains cannot enforce any clause that compels a franchisee in Minnesota to agree to judgment notes.
This protection is outlined in Minn. Stat. §80C.21 and Minn. Rule 2860.4400(J), which explicitly prohibits Best Brains from requiring franchisees to consent to judgment notes. Additionally, the laws prevent Best Brains from mandating that litigation occur outside of Minnesota or requiring franchisees to waive their right to a jury trial. The laws also protect franchisees from being forced to accept liquidated damages or termination penalties.
For a prospective Best Brains franchisee in Minnesota, this addendum provides significant legal safeguards. It ensures that the franchisee retains all rights and remedies available under Minnesota law, preventing Best Brains from imposing unfair or overly restrictive conditions. This includes the right to proper notice of termination or non-renewal, as well as protection of the franchisee's trademark rights. The Minnesota addendum aims to create a fairer balance of power between the franchisor and franchisee within the state.