Can Degree Wellness require a franchisee to consent to judgment notes under Minnesota law?
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.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, if a franchise is governed by Minnesota law, Degree Wellness is prohibited from requiring the franchisee to consent to judgment notes. Specifically, Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J explicitly prevent Degree Wellness from mandating that franchisees agree to judgment notes. This protection is part of a broader set of regulations designed to safeguard the rights of franchisees within the state.
This means that Degree Wellness franchisees in Minnesota cannot be forced to sign agreements that would allow Degree Wellness to obtain a judgment against them without a full legal proceeding. This provision ensures that franchisees retain their rights to contest any claims made against them in court and prevents franchisors from using judgment notes as a means of extracting unfair concessions.
This protection is significant for prospective Degree Wellness franchisees in Minnesota, as it limits the franchisor's ability to enforce financial obligations through expedited legal means. It ensures a fairer legal process and provides franchisees with the opportunity to defend themselves against potential claims. This aligns with the general intent of Minnesota franchise law to balance the power dynamic between franchisors and franchisees, offering franchisees a more level playing field.