What actions is Dog Haus prohibited from requiring of a franchisee in Minnesota regarding litigation, jury trials, and penalties?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
"Minn. Stat. Sec. 80C.21 and Minnesota Rules 2860.4400(J) prohibit us from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring you to consent to liquidated damages, termination penalties, or judgment notes."
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, Minnesota law places specific restrictions on what Dog Haus can require of its franchisees in that state. Specifically, Dog Haus is prohibited from mandating that litigation be conducted outside of Minnesota. This means a franchisee cannot be forced to resolve disputes in another state, which could be more costly and inconvenient.
Furthermore, Dog Haus cannot require a franchisee to waive their right to a jury trial. This ensures that franchisees have the option to have their case decided by a jury of their peers, rather than solely by a judge, in legal disputes.
Finally, Dog Haus is not allowed to require franchisees to consent to liquidated damages, termination penalties, or judgment notes. Liquidated damages and termination penalties are pre-determined amounts of money a franchisee would have to pay in the event of a breach of contract or termination. Judgment notes are agreements where a franchisee consents in advance to a judgment against them. Minnesota law protects franchisees from being forced into these types of agreements, ensuring a fairer balance of power.