Can Bombs Away require a franchisee to consent to judgment notes in Minnesota?
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 addendum specifically references Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J), which disallows Bombs Away from mandating franchisees to consent to judgment notes.
This provision ensures that franchisees operating in Minnesota are not forced into agreements that could unfairly disadvantage them in legal or financial matters. Judgment notes can be particularly risky for franchisees as they essentially allow the franchisor to obtain a judgment against the franchisee without a full trial or legal proceeding. By prohibiting this requirement, Minnesota law aims to protect franchisees from potential overreach by the franchisor.
It is important for prospective Bombs Away franchisees in Minnesota to understand this protection and to ensure that the franchise agreement complies with Minnesota law. Franchisees should carefully review the franchise agreement and any addenda to ensure that their rights are fully protected under state law. If there are any discrepancies or concerns, franchisees should seek legal counsel to ensure compliance and to understand their rights and obligations.