Can Circle K require a franchisee in Minnesota to consent to judgment notes?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
Minnesota Statutes, Section 80C.21 and Minnesota Rules 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. In addition, nothing in the Franchise Disclosure Document or agreement(s) can abrogate or reduce (1) any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C or (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, Circle K is prohibited from requiring a franchisee in Minnesota to consent to judgment notes. This protection is explicitly stated in the addendum for Minnesota franchises. This addendum ensures that the franchise agreement adheres to Minnesota statutes and regulations, specifically referencing Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J).
This provision means that Circle K franchisees in Minnesota cannot be compelled to agree in advance to a judgment against them in the event of a dispute. This protects the franchisee from potentially unfair or overreaching demands by the franchisor. It ensures that any judgment would need to be obtained through a fair legal process, rather than by pre-arranged consent.
Furthermore, the FDD states that nothing in the Franchise Disclosure Document or agreements can reduce any of the franchisee's rights as provided by Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided by the laws of the jurisdiction. This reinforces the protection of franchisee rights under Minnesota law. This also prevents Circle K from circumventing Minnesota law through clauses in the franchise agreement.