In what courts can Dryject bring an action that includes injunctive relief?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
0J, the Agreement is amended to include that it shall be unfair and inequitable for any person to require a franchisee to waive his or her rights to a jury trial or waive rights to any procedure, forum, or remedies provided by the laws of the jurisdiction, or to consent to liquidated damages, termination procedures, or judgment notes; provided that the foregoing shall not bar an exclusive arbitration clause. Under Minn. Rule 2860.4400J, a franchisee cannot waive any rights or consent to the franchisor obtaining injunctive relief (although the franchisor may seek injunctive relief). Each reference in the Agreement to the phrase "Franchise Owner consents that DryJect is entitled to injunctive relief" or words of similar import shall be deleted and the phrase "DryJect may seek injunctive relief" shall be inserted in its place.
- 8. Jurisdiction. The following is added to Section 48:
Minn. Stat. Sec. 80C.,21 and Minn. Rules 2860.4400J prohibit DryJect 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 disclosure document or franchise agreement can abrogate or reduce any of Franchise Owner's rights as provided for in Minnesota Statutes, Chapter 80C, or Franchise Owner's rights to any procedure, forum or remedies provided for by the laws of the jurisdiction. Intending to be bound, DryJect signs and delivers this Rider in 2 counterparts effective on the Agreement Date, regardless of the actual date of signature.
- Limitation on Claims. The following is added to Section 40: Minn. Stat. § 80C.17, subdivision 5 prohibits any action commencing section more than three years after the cause of action accrues.
Each provision of this Agreement shall be effective only to the extent that the jurisdictional requirements of Minnesota law applicable to the provision are met independent of this Rider. This Rider shall have no force or effect if such jurisdictional requirements are not met. As to any state law described in this Rider that declares void or unenforceable any provision contained in the Agreement, DryJect reserves the right to challenge the enforceability of the state law by, among other things, bringing an appropriate legal action or by raising the claim in a legal action that Franchise Owner has initiated.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, Dryject may seek injunctive relief, but the FDD does not specify in which courts Dryject can bring an action that includes injunctive relief. However, the FDD does state that Minn. Stat. Sec. 80C.,21 and Minn. Rules 2860.4400J prohibit Dryject from requiring litigation to be conducted outside Minnesota. Also, Section 4-216(c)(25) of the Maryland Franchise Registration and Disclosure Law requires Dryject to file an irrevocable consent to be sued in Maryland, and a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Exhibit K of the Dryject FDD states that Dryject reserves the right to challenge the constitutionality of state law by bringing an appropriate legal action or raising the claim in a legal action or arbitration that you initiate. Additionally, should legal proceedings have to be brought by Dryject against a trainee to enforce any Non-Competition Covenant or for Trainee's failure to maintain Confidentiality, the period of restriction shall be deemed to begin running on the date of entry of an order granting Dryject preliminary injunctive relief and shall continue uninterrupted for the entire period of restriction.
A prospective franchisee should inquire with Dryject about the specific venues and conditions under which Dryject may pursue injunctive relief, as well as the criteria and procedures involved in such actions. Understanding these details is crucial for assessing the potential legal and financial implications of the franchise agreement.