factual

In Minnesota, can Crave Cookies require the franchisee to consent to judgment notes?

Crave_Cookies Franchise · 2025 FDD

Answer 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, Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) explicitly prohibit Crave Cookies from requiring franchisees to consent to judgment notes within the state of Minnesota. This protection is part of a broader set of regulations designed to safeguard franchisee rights. The FDD also states that no part of the franchise documents can reduce any of the 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.

This means that if a prospective franchisee is opening a Crave Cookies location in Minnesota, they cannot be compelled to agree to judgment notes as part of the franchise agreement. This provides a significant legal protection, ensuring that franchisees are not forced into agreements that could be detrimental to their financial interests. Judgment notes can be risky for franchisees because they essentially allow the franchisor to obtain a judgment against the franchisee without a full trial or legal proceeding if a dispute arises.

This provision is specific to Minnesota, as indicated by the "Minnesota Addendum to Disclosure Document." Franchisees in other states may not have the same protection, so it's essential to review the specific addenda or riders applicable to their state. This highlights the importance of carefully reviewing the FDD and any state-specific addenda to understand the full scope of legal protections and obligations in the relevant jurisdiction.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.