What does Minn. Stat. Sec. 80C.21 prohibit Cream from requiring in the franchise agreement?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary contained in the Area Development Agreement, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibit us from requiring you to waive your rights to a jury trial or to waive your rights to any procedure, forum or remedies provided for by the laws of the jurisdiction, or to consent to liquidated damages, termination penalties or judgment notes.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J place specific restrictions on what Cream can mandate in its Area Development Agreement and Franchise Agreement within Minnesota. These laws prevent Cream from requiring franchisees or area developers to waive their right to a jury trial, or to waive their rights to any procedure, forum, or remedies provided by the laws of the jurisdiction.
Furthermore, Cream is prohibited from requiring franchisees or area developers to consent to liquidated damages, termination penalties, or judgment notes in Minnesota. This means that Cream cannot include clauses in their agreements that would automatically impose fixed financial penalties under those circumstances.
Additionally, the disclosure clarifies that nothing within the Disclosure Document, Area Development Agreement, or Franchise Agreement can override or diminish any rights granted to Area Developers or Franchisees under Minnesota Statutes, Chapter 80C. It also ensures that their rights to any procedure, forum, or remedies provided by the laws of the jurisdiction are protected. These stipulations ensure that Minnesota franchisees and area developers retain their legal rights and protections under state law, preventing Cream from imposing contractual terms that would undermine those rights.