In Minnesota, can Chocolate Fish Coffee require franchisees to consent to termination penalties?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
The franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400J. Also, a court will determine if a bond is required.
The Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5, and therefore the applicable provision of the Agreement is amended to state "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues."
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, Minnesota franchisees cannot consent to Chocolate Fish Coffee obtaining injunctive relief. The FDD states that Chocolate Fish Coffee may seek injunctive relief, and a court will determine if a bond is required.
Furthermore, the Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5. Therefore, the applicable provision of the Agreement is amended to state "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues."
This means that Chocolate Fish Coffee franchisees in Minnesota are protected by state law regarding injunctive relief and limitations on claims. They cannot be forced to consent to Chocolate Fish Coffee obtaining injunctive relief, and any legal action must be commenced within three years of the cause of action.