Does the Crave Cookies franchise agreement require the franchisee to consent to liquidated damages or termination penalties?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
In the State of Minnesota only, this Disclosure Document is amended as follows:
- 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 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to the 2025 Crave Cookies FDD, the Minnesota Addendum to the Disclosure Document states that Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit Crave Cookies from requiring a franchisee to consent to liquidated damages or termination penalties in the state of Minnesota. This clause is specific to Minnesota, suggesting that the standard Crave Cookies franchise agreement might contain such requirements in other states.
For prospective Crave Cookies franchisees in Minnesota, this addendum provides protection against being forced to agree to liquidated damages or termination penalties. This means that the terms of the franchise agreement cannot legally obligate a franchisee to consent to these types of financial repercussions.
However, franchisees outside of Minnesota should carefully review their franchise agreements to understand whether such clauses exist and what their potential financial liabilities might be upon termination or breach of contract. It is important to consult with a legal professional to fully understand the implications of these clauses in the context of their specific state laws and the franchise agreement.