In Minnesota, is Craters & Freighters allowed to require the franchisee to consent to liquidated damages?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 17.
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- Minn. Stat. § 80C.21 and Minn. Rule 2860.4400J prohibit us 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 any of franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, Minnesota franchisees are protected from being required to consent to liquidated damages. Minnesota statutes and regulations apply specifically to Craters & Freighters franchises within the state.
This protection means that Craters & Freighters cannot force a franchisee in Minnesota to agree in advance to a fixed amount of monetary damages in the event of a breach of contract. This is designed to protect franchisees from potentially unfair or excessive penalties.
In addition to the prohibition on requiring consent to liquidated damages, Minnesota law also prevents Craters & Freighters from mandating that litigation be conducted outside of Minnesota or requiring a waiver of a jury trial. These regulations collectively ensure that Minnesota franchisees retain certain legal rights and protections under state law, preventing the franchisor from imposing unduly restrictive or one-sided contractual terms.