Can Crave Cookies require a franchisee to consent to termination penalties under Minnesota law?
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 Franchise Disclosure Document, if a franchisee is operating in the state of Minnesota, Crave Cookies is prohibited from requiring the franchisee to consent to termination penalties.
The Minnesota Addendum to the Disclosure Document explicitly 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, termination penalties, or judgment notes. This protects franchisees in Minnesota from being forced into agreements that include such penalties.
Furthermore, the addendum clarifies that nothing in the Franchise Disclosure Document or any 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. This ensures that Minnesota franchisees retain all rights and protections afforded to them under state law, regardless of what the standard franchise agreement might otherwise stipulate. This addendum serves to modify the standard Crave Cookies franchise agreement to comply with Minnesota law, providing additional protections for franchisees operating within the state.