Can Better Blend require a franchisee to consent to judgment notes in Minnesota?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD 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 a franchisee is operating in Minnesota, Better Blend is prohibited from requiring the franchisee to consent to judgment notes.
The Minnesota Addendum specifically states that Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit Better Blend from requiring franchisees to consent to judgment notes. This means that Better Blend cannot include any clause in the franchise agreement that forces a franchisee in Minnesota to agree to a judgment note, which is a written agreement where the franchisee consents to a judgment against them in the event of a default or breach of contract.
This protection is in place to safeguard the rights of franchisees within Minnesota, ensuring they are not subjected to potentially unfair or coercive contractual terms. Prospective franchisees in Minnesota should carefully review the franchise agreement to ensure compliance with these state-specific regulations.