In Minnesota, can the Bombs Away franchisor require the franchisee to consent to judgment notes?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
In the State of Minnesota only, this Disclosure Document is amended as follows:
- Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a 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 agreement(s) can abrogate or reduce (1) any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C or (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 36–117)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, if you are opening a franchise in Minnesota, Bombs Away is prohibited from requiring you to consent to judgment notes. This protection is explicitly stated in the Minnesota Addendum to the Disclosure Document.
This means that Bombs Away cannot include any clause in the franchise agreement that forces you to agree in advance to a judgment against you in case of a dispute. This provision is designed to protect franchisees from potentially unfair or overreaching practices by the franchisor.
In addition to the prohibition on requiring consent to judgment notes, Minnesota law also prevents Bombs Away from requiring litigation to be conducted outside of Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages or termination penalties. These regulations collectively ensure that franchisees in Minnesota have certain fundamental rights and protections under the law.