In Minnesota, can Cinnaholic require a franchisee to consent to judgment notes?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Minnesota Statute 80C.21 and Minnesota Rule 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.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–35)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Minnesota Statute 80C.21 and Minnesota Rule 2860.4400(J) explicitly prohibit Cinnaholic from requiring a franchisee to consent to judgment notes. This protection is in place to ensure fairness in the contractual relationship between the franchisor and franchisee.
This means that Cinnaholic cannot include any clause in its franchise agreement that forces a franchisee to agree in advance to a judgment against them in the event of a dispute. This provision safeguards the franchisee's right to contest any claims made by Cinnaholic in a fair legal proceeding.
For a prospective Cinnaholic franchisee in Minnesota, this is a significant protection. It ensures that they cannot be compelled to surrender their legal rights or agree to a judgment without having the opportunity to present their case in court. This aligns with Minnesota's broader efforts to protect franchisees from potentially overbearing franchisor practices.