Are there any exceptions to the limitation on damages for Bumper Man franchisees?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
Minn. Stat. §80C.21 and Minnesota Rule 2860.4400(J) prohibit Franchisor from requiring litigation to be conducted outside of Minnesota, requiring waiver of a jury trial or requiring Franchisee to consent to liquidated damages, termination penalties or judgment notes.
In addition, nothing in the Franchise Disclosure Document or Franchise Agreement can abrogate or reduce any of Franchisee's rights as provided for under the Minnesota Franchise Investment Law or Franchisee's rights to any procedure, forum or remedies provided for by the laws of the State of Minnesota.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man FDD, Minnesota franchisees have specific protections under Minn. Stat. §80C.21 and Minnesota Rule 2860.4400(J). These regulations prevent Bumper Man from requiring litigation to occur outside of Minnesota, enforcing jury trial waivers, or mandating franchisee consent to liquidated damages, termination penalties, or judgment notes. This addendum ensures that the standard franchise agreement does not infringe upon the rights granted to franchisees under Minnesota law.
This means that if a Bumper Man franchisee operates in Minnesota, certain clauses within the standard franchise agreement that might limit their legal rights or impose specific financial penalties may not be enforceable. The Minnesota Franchise Investment Law provides additional safeguards, ensuring franchisees retain access to procedures, forums, and remedies available under state law.
For prospective Bumper Man franchisees in Minnesota, this addendum offers significant protection. It ensures that the franchisee's rights under Minnesota law are upheld, regardless of what the standard franchise agreement might stipulate. This could be particularly important in dispute resolution, where the franchisee retains the right to a jury trial and is not subject to predetermined damage amounts or penalties.