Can a Desi District franchisee in Minnesota be forced to consent to judgment notes?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee 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 the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C or (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Source: Item 23 — RECEIPTS (FDD pages 52–140)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, Minnesota law protects franchisees from being forced to consent to judgment notes. Specifically, Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) explicitly prohibit Desi District from requiring franchisees to consent to judgment notes. This protection is part of a broader set of regulations in Minnesota aimed at ensuring fairness in franchise agreements.
This means that a prospective Desi District franchisee in Minnesota cannot be compelled to agree in advance to a judgment against them in case of a dispute. This provision prevents the franchisor from having an unfair advantage in potential legal disputes by eliminating the franchisee's ability to contest a judgment.
Furthermore, the Minnesota addendum clarifies that nothing in the Franchise Disclosure Document or any related agreements can reduce or remove any of the franchisee's rights as provided by Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies available under Minnesota law. This reinforces the protection against mandatory consent to judgment notes and other potentially unfair practices, ensuring that franchisees retain their full legal rights and options within the state.