In Minnesota, can a Better Blend franchisee be required to consent to judgment notes?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
MINNESOTA ADDENDUM TO DISCLOSURE DOCUMENT
In the State of Minnesota only, this Disclosure Document is amended as follows:
- 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 43–157)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, if you are opening a franchise in Minnesota, the franchisor is prohibited from requiring you to consent to judgment notes. This protection is explicitly stated in the Minnesota Addendum to the Disclosure Document. This addendum modifies the standard franchise agreement to comply with Minnesota law.
This means that Better Blend franchisees in Minnesota cannot be forced to agree in advance to a judgment against them in the event of a dispute or breach of contract. This provision is designed to protect franchisees from potentially unfair or coercive tactics by the franchisor. It ensures that any judgment against a franchisee must be obtained through a fair legal process.
Beyond judgment notes, the Minnesota Addendum also addresses other areas where Minnesota law provides specific protections for franchisees. These include restrictions on requiring litigation outside of Minnesota, waivers of jury trials, and consent to liquidated damages or termination penalties. The addendum also ensures that the franchisee's rights under Minnesota Statutes, Chapter 80C, are not diminished by anything in the franchise agreement. Prospective franchisees in Minnesota should carefully review the Minnesota Addendum to fully understand their rights under state law.