In Minnesota, can a Canine Dimensions franchisee consent to 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.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, if a franchise is offered and sold in Minnesota, a franchisee cannot consent to liquidated damages. The FDD states that Minnesota Rule Part 2860.4400J prohibits a franchisee from consenting to liquidated damages.
This means that any clause in the Canine Dimensions franchise agreement that requires a franchisee in Minnesota to agree to liquidated damages is not enforceable. Liquidated damages are pre-determined amounts of money that a franchisee would have to pay to Canine Dimensions in the event of a breach of contract.
This protection is in place to safeguard franchisees from potentially unfair or overly burdensome financial penalties. Prospective franchisees in Minnesota should be aware of this provision, as it modifies the standard terms of the Canine Dimensions franchise agreement to comply with Minnesota law. Franchisees should consult with a legal professional to fully understand their rights and obligations under Minnesota law.