Does Minnesota law allow Degree Wellness to require consent to judgment notes from franchisees?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Minn.
Stat. § 80C.21 and Minn.
Rule 2860.4400J prohibit Franchisor from requiring litigation from claims arising under Minnesota franchise laws (Minn.
Stat. §§80C.01
- through 80C.22) to be conducted outside Minnesota, requiring a waiver of jury trial, and prohibits Franchisor from requiring the Franchise Owner to consent to liquidated damages, termination penalties or judgment notes.
In addition, nothing in the Agreement or Franchise Disclosure Document can abrogate or reduce any of Franchise Owner's rights as provided for in Minnesota Statutes, Chapter 80C, or Franchise Owner's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, Minnesota law does not allow Degree Wellness to require franchisees to consent to judgment notes. Specifically, Minn. Stat. § 80C.21 and Minn. Rule 2860.4400J prohibit Degree Wellness from requiring franchisees to consent to judgment notes. This protection is part of Minnesota's broader franchise laws (Minn. Stat. §§80C.01 through 80C.22). These laws aim to safeguard the rights of franchisees within the state.
This means that if a prospective franchisee is considering opening a Degree Wellness franchise in Minnesota, they cannot be compelled to agree in advance to a judgment note as part of the franchise agreement. This provision ensures that franchisees retain their legal rights and are not forced into unfair agreements that could be detrimental to their business.
Furthermore, the FDD states that nothing in the franchise agreement or disclosure document 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. This reinforces the protection afforded to franchisees under Minnesota law and prevents Degree Wellness from circumventing these protections through contractual terms.