In Minnesota, can Crown Gold Exchange require the franchisee to consent to judgment notes?

According to the 2024 Crown Gold Exchange Franchise Disclosure Document, Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) explicitly prohibit Crown Gold Exchange from requiring franchisees to consent to judgment notes within the state of Minnesota. This protection is designed to safeguard franchisees from potentially unfair or overreaching contractual obligations. This provision is part of an addendum specific to Minnesota, indicating that the standard franchise agreement may contain clauses that are not enforceable in Minnesota due to state law.

This prohibition means that Crown Gold Exchange franchisees in Minnesota cannot be compelled to agree in advance to a judgment against them in the event of a dispute. This ensures that franchisees retain their right to a fair legal process and are not forced into a position where a judgment can be entered without a full hearing. The Minnesota addendum also 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 their rights to any procedure, forum, or remedies provided by the laws of the jurisdiction.

Furthermore, the Minnesota addendum includes additional protections for franchisees, such as restrictions on requiring litigation to be conducted outside Minnesota, waivers of jury trials, or consent to liquidated damages or termination penalties. These provisions collectively aim to create a more balanced relationship between Crown Gold Exchange and its Minnesota franchisees, ensuring compliance with Minnesota's franchise laws and protecting the franchisees' legal rights and recourse options.