In Minnesota, is Black Bear Diner prohibited from requiring a franchisee to consent to judgment notes?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Minnesota Statutes, Section 80C.21 and Minnesota Rule 2860.4400(J) prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of 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 any of franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, Minnesota Statutes, Section 80C.21 and Minnesota Rule 2860.4400(J) explicitly prohibit Black Bear Diner from requiring a franchisee to consent to judgment notes. This protection is part of a broader set of regulations in Minnesota that aim to protect franchisees.
This statute also prevents Black Bear Diner from requiring litigation to be conducted outside of Minnesota or requiring a waiver of a jury trial. The statute also prohibits Black Bear Diner from requiring the franchisee to consent to liquidated damages or termination penalties. These regulations collectively ensure that Minnesota franchisees retain certain legal rights and protections within the franchise agreement.
Furthermore, the FDD states that nothing within the Franchise Disclosure Document or the agreements associated with it can reduce or eliminate any of the franchisee's rights as provided by Minnesota Statutes, Chapter 80C. This extends to the franchisee's rights to any procedure, forum, or remedies available under Minnesota law. This clause reinforces the state's commitment to safeguarding franchisee rights and ensuring a fair legal recourse process.