In Minnesota, can a Bombs Away franchisee consent to the franchisor obtaining injunctive relief?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- Minnesota Rules 2860.4400(D) prohibits a franchisor from requiring a franchisee to assent to a general release.
- The franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400J. Also, a court will determine if a bond is required.
Source: Item 23 — RECEIPTS (FDD pages 36–117)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, a franchisee in Minnesota cannot consent to the franchisor obtaining injunctive relief. However, Bombs Away retains the right to seek injunctive relief against its franchisees in Minnesota. This is explicitly stated in Item 23, Receipts, within the Minnesota Addendum to the Disclosure Document.
This provision is significant for prospective Bombs Away franchisees in Minnesota because it means they cannot contractually agree to allow Bombs Away to obtain a court order (injunctive relief) against them. This protection is afforded by Minnesota Rules 2860.4400J. However, it's important to note that Bombs Away is not prevented from seeking injunctive relief through the courts; the court will ultimately decide if such relief is warranted and if a bond is required.
This type of restriction is not uncommon in franchise agreements, as many states have laws in place to protect franchisees from overreaching franchisor demands. Franchisees should be aware of these protections and understand their rights under state law. The interplay between the franchisor's rights and the franchisee's protections is a critical aspect of the franchise relationship, particularly in the context of potential legal disputes.