Can Desi District require a franchisee to consent to judgment notes in Minnesota?

According to Desi District's 2024 Franchise Disclosure Document, if a franchisee is operating in Minnesota, Desi District is prohibited from requiring the franchisee to consent to judgment notes. This protection is explicitly stated in the Minnesota Addendum to the Disclosure Document. This addendum modifies the standard franchise agreement to comply with Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J). These laws prevent Desi District from enforcing certain terms that would be disadvantageous to the franchisee.

Specifically, the Minnesota statutes and rules prevent Desi District from requiring franchisees to litigate outside of Minnesota, waive their right to a jury trial, or agree to liquidated damages or termination penalties in addition to judgment notes. The FDD emphasizes that nothing in the franchise documents can reduce any rights provided to the franchisee under Minnesota Statutes, Chapter 80C, or their rights to procedures, forums, or remedies available under Minnesota law.

This provision ensures that Minnesota franchisees retain all legal rights and protections afforded to them under state law, regardless of what the standard Desi District franchise agreement might otherwise stipulate. Prospective franchisees in Minnesota can be assured that they cannot be compelled to consent to judgment notes, which could be detrimental to their financial and legal standing.