Can Desi District require franchisees in Minnesota 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 Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) explicitly prohibit Desi District from requiring franchisees in Minnesota to consent to judgment notes. This protection is part of a broader set of regulations designed to safeguard franchisee rights within the state. The Minnesota Addendum to the Disclosure Document emphasizes that nothing in the Franchise Disclosure Document or any related agreements can diminish the rights granted to franchisees under Minnesota Statutes, Chapter 80C, or their access to procedures, forums, or remedies provided by Minnesota law.
This means that Desi District franchisees in Minnesota are not obligated to agree to judgment notes as a condition of their franchise agreement. This provision ensures that franchisees retain their legal rights and protections under Minnesota law, preventing Desi District from imposing terms that might be considered unfair or inequitable. The addendum serves to modify the standard franchise agreement to align with Minnesota's specific franchise regulations.
Prospective franchisees should be aware of these protections and ensure that their franchise agreement reflects these stipulations. It is important for franchisees to understand their rights within the legal framework of their state, and this addendum clarifies specific points where Minnesota law takes precedence over standard franchise agreement terms. This ensures that franchisees operating in Minnesota are afforded the full scope of legal protections available to them under state law.