In Minnesota, can Crave Cookies require the franchisee to consent to termination penalties?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
MINNESOTA ADDENDUM TO DISCLOSURE 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 Crave Cookies' 2025 Franchise Disclosure Document, in the state of Minnesota, Crave Cookies is prohibited from requiring franchisees to consent to termination penalties. This protection is explicitly stated in the Minnesota Addendum to the Disclosure Document, which references Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J). These regulations ensure that franchisees are not forced to agree to terms that could unfairly penalize them upon termination of the franchise agreement.
This provision is significant for prospective Crave Cookies franchisees in Minnesota as it safeguards them from potentially onerous financial burdens if the franchise relationship ends. It ensures that the franchisee's rights are protected under Minnesota law, preventing the franchisor from imposing undue financial risks related to termination. This protection aligns with the broader aim of Minnesota Statutes, Chapter 80C, which seeks to balance the interests of franchisors and franchisees, ensuring a fairer business environment.
Furthermore, the Minnesota Addendum clarifies that no part of the Franchise Disclosure Document or any related agreements can diminish the franchisee's rights as provided by Minnesota Statutes, Chapter 80C, or their access to procedures, forums, or remedies available under Minnesota law. This reinforces the state's commitment to protecting franchisees' legal recourse and rights, ensuring that franchisees operating in Minnesota are afforded the full protection of the state's franchise laws.