Can Cream require a franchisee in Minnesota to consent to judgment notes?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibits us from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial or requiring the Area Developer or Franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Disclosure Document, Area Development Agreement or Franchise Agreement can abrogate or reduce any of Area Developer's or Franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or Area Developer's or Franchisee's rights to any procedure, forum or remedies provided for by the laws of the jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, if a Cream franchised business is operated in Minnesota, Cream is prohibited from requiring the franchisee to consent to judgment notes. Specifically, Minnesota Statute Sec. 80C.21 and Minn. Rule 2860.4400J do not allow Cream to require a franchisee to consent to judgment notes.
This protection extends to other legal rights as well. Cream cannot force a Minnesota franchisee to waive their right to a jury trial or to waive their rights to any procedure, forum, or remedies provided by Minnesota law. Additionally, Cream is prohibited from requiring Minnesota franchisees to consent to liquidated damages or termination penalties.
This means that prospective Cream franchisees in Minnesota will retain their legal rights and protections under Minnesota law, and Cream cannot use the franchise agreement to force them to give up these rights. This is a significant benefit for franchisees, as it ensures a fairer legal playing field in the event of disputes.