Can Crave Cookies require a franchisee to consent to liquidated damages under Minnesota law?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
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's 2025 Franchise Disclosure Document, Minnesota law offers specific protections to franchisees. The FDD includes a Minnesota addendum that addresses how the franchise agreement is amended to comply with Minnesota law.
Specifically, Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) explicitly prohibit Crave Cookies from requiring franchisees in Minnesota to consent to liquidated damages. This means that Crave Cookies cannot include any clause in the franchise agreement that forces a Minnesota franchisee to agree to a predetermined amount of damages in case of a breach of contract.
This protection ensures that Minnesota franchisees are not subjected to potentially unfair or excessive penalties. Additionally, the Minnesota addendum clarifies that nothing in the Franchise Disclosure Document or agreements can reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or the franchisee's rights to any procedure, forum, or remedies provided by Minnesota law.
Therefore, prospective Crave Cookies franchisees in Minnesota can be assured that they will not be required to consent to liquidated damages, and their rights under Minnesota law are fully protected.