Can Crisp & Green require a franchisee to consent to judgment notes in Minnesota?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
Minn. Stat. § 80C.21 and Minn. Rules Part 2860.4400J prohibit us from requiring litigation to be conducted outside the state of Minnesota, requiring waiver of a jury trial, or requiring you 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 your rights as provided for in Minnesota Statutes and/or Chapter 80C, or (2) your rights to any procedure, forum or remedies provided for by the laws of the state of Minnesota. Minn. Rules Part 2860.4400J states that you cannot consent to us obtaining injunctive relief. However, we may seek injunctive relief and a court will determine if a bond is required.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, Crisp & Green is prohibited from requiring a franchisee to consent to judgment notes in the state of Minnesota. This protection is explicitly stated in the Minnesota Addendum to the Franchise Agreement, ensuring that franchisees are not forced into agreements that could unfairly prejudice them.
This provision is crucial for prospective Crisp & Green franchisees in Minnesota as it prevents the franchisor from including terms that would compel them to agree to a judgment note, which could be detrimental to their financial interests. Judgment notes can allow a franchisor to quickly obtain a judgment against a franchisee without a full trial, potentially leading to asset seizure or other financial hardships.
The FDD emphasizes that Minnesota law and regulations protect franchisees from such requirements, reinforcing the state's commitment to fair franchising practices. This protection aligns with the broader aim of preventing franchisors from leveraging their position to impose unduly harsh or one-sided terms on franchisees, ensuring a more balanced and equitable franchise relationship.