Can Cool Binz require the franchisee to consent to judgment notes in Minnesota?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Dispute Resolution Procedures/Governing Law. The following language is added to Sections 15.F and 15.H. of the Agreement:
PURSUANT TO MINN. STAT. 80C.21 AND MINN. RULE 2860.4400J,the Franchisor is prohibited from (i) requiring litigation to be conducted outside Minnesota; (ii) requiring waiver of a jury trial; and (iii) requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. Nothing in the Franchise Disclosure Document or agreement(s) can abrogate or reduce (i) any of the franchisee's rights as provided for in Minnesota Franchise Act or (ii) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to the 2025 Cool Binz Franchise Disclosure Document, Cool Binz is prohibited from requiring franchisees to consent to judgment notes if the franchise is governed by Minnesota law. This protection is explicitly stated in the addendum to the franchise agreement for use in Minnesota.
Specifically, the FDD states that Cool Binz cannot mandate that franchisees agree to liquidated damages, termination penalties, or judgment notes, ensuring franchisees are not forced into unfair financial agreements. This provision is in place to protect the franchisee's rights under the Minnesota Franchise Act.
This means that if a Cool Binz franchisee operates in Minnesota, they cannot be compelled to sign any agreement that includes consenting to judgment notes as a condition of the franchise agreement. This stipulation provides a safeguard against potentially overbearing financial demands from the franchisor, ensuring a fairer business relationship within the bounds of Minnesota law.