In Minnesota, who determines if a bond is required for injunctive relief sought by Desi District?

According to Desi District's 2024 Franchise Disclosure Document, in Minnesota, a court will determine if a bond is required if Desi District seeks injunctive relief against a franchisee. This is outlined in the Minnesota Rider to the Franchise and Multi-Unit Development Agreement. The franchisee cannot consent to Desi District obtaining injunctive relief. This stipulation is in compliance with Minn. Rules 2860.4400J.

This means that if Desi District seeks a court order (injunctive relief) to compel a franchisee to take certain actions or prevent them from doing something, the court will decide whether Desi District needs to provide a bond. A bond is a sum of money set aside that could be used to compensate the franchisee if the injunction is later found to be wrongly issued or if the franchisee suffers damages as a result of the injunction.

This provision protects the franchisee by ensuring an impartial assessment of the need for a bond. It prevents Desi District from unilaterally imposing financial burdens on the franchisee in connection with injunctive relief. The franchisee's inability to consent to injunctive relief further safeguards their rights, ensuring they cannot be coerced into accepting potentially unfair terms. This is more protective than in some states where a franchisor might have more leverage in requiring bonds or obtaining injunctive relief.