Which article in the Canine Dimensions franchise agreement outlines the franchisee's obligations regarding liquidated damages?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
Minn. Rule Part 2860.4400J. prohibits a franchisee from waiving his rights to a jury trial or waiving his rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction, or consenting to liquidated damages, termination penalties or judgment notes.
Any provision in the Agreement which would require you to waive your rights to any procedure, forum or remedies provided for by the laws of the State of Minnesota is deleted from any Agreement relating to franchises offered and sold in the State of Minnesota; provided, however, that this paragraph will not affect the obligation in the Agreement relating to arbitration.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 17–18)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, while the franchise agreement generally outlines various obligations and conditions, there is no specific article number mentioned that deals with liquidated damages, with one exception. For franchisees in Minnesota, the addendum specifically addresses liquidated damages.
Specifically, the addendum for Minnesota franchisees states that Minnesota Rule Part 2860.4400J prohibits a franchisee from consenting to liquidated damages. This means that any provision in the standard Canine Dimensions franchise agreement that would require a franchisee in Minnesota to agree to liquidated damages is deleted from the agreement. This addendum ensures that the franchisee's rights under Minnesota law are protected, preventing the franchisor from enforcing clauses that might otherwise be present in the standard agreement.
For prospective franchisees outside of Minnesota, it's important to carefully review the franchise agreement and consult with a legal professional to understand the implications of any clauses related to liquidated damages. Franchisees should seek clarification from Canine Dimensions regarding the specific circumstances under which liquidated damages may be assessed and the methods for calculating such damages. Understanding these obligations is crucial for making an informed decision about investing in a Canine Dimensions franchise.