Can the Beverly Anns Cookie Franchise Agreement require me to consent to liquidated damages in Minnesota?

According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, if you are opening a franchise in Minnesota, the Franchise Agreement cannot require you to consent to liquidated damages. The FDD states that Minnesota Rule Part 2860.4400J prohibits a franchisee from consenting to liquidated damages. Any provision in the Franchise Agreement that requires you to waive your rights to any procedure, forum, or remedies provided by the laws of the State of Minnesota is deleted from any agreement relating to franchises offered and sold in Minnesota.

This means that Beverly Anns Cookie franchisees in Minnesota will not be bound by any clauses in the standard franchise agreement that compel them to accept liquidated damages or waive their legal rights to procedures, forums, or remedies under Minnesota law. This protects franchisees from potentially unfair or overly burdensome financial penalties and ensures they retain their legal recourse options.

However, it is important to note that the obligation in the Franchise Agreement relating to arbitration is not affected. This means that while you cannot be forced to consent to liquidated damages, you may still be required to resolve disputes through arbitration rather than through the court system. Franchisees should consult with a legal professional to fully understand their rights and obligations under the Franchise Agreement, especially concerning dispute resolution and financial liabilities.