Can the Beverly Anns Cookie Franchise Agreement require me to consent to termination penalties in Minnesota?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
MINNESOTA
Despite anything to the contrary in the Franchise Agreement, the following provisions will supersede and apply to all Franchises offered and sold in the State of Minnesota:
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- Minn. Rule Part 2860.4400J. prohibits a franchisee from waiving his rights to a jury trial or waiving his rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction, or consenting to liquidated damages, termination penalties or judgment notes. Any provision in the Franchise Agreement which would require you to waive your rights to any procedure, forum or remedies provided for by the laws of the State of Minnesota is deleted from any agreement relating to Franchises offered and sold in the State of Minnesota; provided, however, that this paragraph will not affect the obligation in the Franchise Agreement relating to arbitration.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, the Franchise Agreement cannot require a franchisee to consent to termination penalties in Minnesota. Specifically, Minnesota Rule Part 2860.4400J prohibits a franchisee from consenting to liquidated damages, termination penalties, or judgment notes.
Any provision in the Franchise Agreement that requires a franchisee to waive their rights to procedures, forums, or remedies provided by Minnesota law is deleted from agreements related to franchises offered and sold in Minnesota. However, this does not affect the obligation in the Franchise Agreement relating to arbitration.
Therefore, if you are considering a Beverly Anns Cookie franchise in Minnesota, the franchise agreement will be modified to remove any clauses that require you to consent to termination penalties, ensuring compliance with Minnesota state law.