In Minnesota, is Black Bear Diner prohibited from requiring a franchisee to consent to liquidated damages?

According to the 2025 Black Bear Diner 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 liquidated damages. This means that Black Bear Diner cannot include a clause in its franchise agreement that forces a franchisee in Minnesota to agree to a predetermined amount of damages in the event of a breach of contract. This protection is specific to Minnesota franchisees due to state laws.

This prohibition also extends to requiring litigation to be conducted outside of Minnesota and requiring a waiver of a jury trial. Furthermore, the franchise agreement cannot override or diminish any of the franchisee's rights as provided by Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies available under Minnesota law.

For a prospective Black Bear Diner franchisee in Minnesota, this is a significant benefit. It ensures that they are not forced to accept potentially unfair or one-sided terms regarding dispute resolution and liability. They retain their legal rights and protections under Minnesota law, which can provide a more level playing field in the event of a disagreement with Black Bear Diner.