In Minnesota, can Crave Cookies require the franchisee to consent to liquidated damages?

According to Crave Cookies' 2025 Franchise Disclosure Document, if you are opening a franchise in Minnesota, Crave Cookies cannot require you to consent to liquidated damages. This protection is explicitly stated in the Minnesota Addendum to the Disclosure Document. This addendum references Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J), which prevent Crave Cookies from including such a requirement in the franchise agreement.

This means that as a franchisee in Minnesota, you are not obligated to agree to any clauses that stipulate predetermined amounts of damages payable in the event of a breach of contract. This provision is designed to protect franchisees from potentially unfair or overly burdensome financial penalties. It ensures that any damage claims against a franchisee would need to be substantiated and determined through a fair legal process, rather than being pre-agreed upon without regard to the actual harm caused.

Furthermore, the Minnesota Addendum emphasizes that nothing in the Franchise Disclosure Document or any related agreements can diminish your rights as a franchisee under Minnesota Statutes, Chapter 80C, or your access to procedures, forums, or remedies available under Minnesota law. This reinforces the state's commitment to safeguarding franchisee rights and ensuring a level playing field in the franchisor-franchisee relationship. This protection aligns with the broader aim of Minnesota franchise law to prevent franchisors from imposing unfair or oppressive terms on franchisees.