Can a Dryject franchisee commence legal action that affects the franchisor without approval?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
sonably withheld.
- Marks. Section 19 of the Agreement entitled "Marks" shall be supplemented by the addition of the following language:
"DryJect will protect Franchise Owner's right to use the trademarks, service marks, trade names, logotypes or other commercial symbols or indemnify Franchise Owner from any loss, costs or expenses arising out of any claim, suit or demand regarding the use of the name."
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- Waiver of Rights and Injunctive Relief. Under Minn. Rule 2860.4400J, 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.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, Minnesota law impacts a franchisee's ability to waive rights related to legal proceedings. Specifically, Minn. Stat. Sec. 80C.,21 and Minn. Rules 2860.4400J, as integrated into the franchise agreement, prevent Dryject from mandating that litigation occur outside of Minnesota or requiring a franchisee to waive their right to a jury trial. Furthermore, Dryject cannot force a franchisee to consent to liquidated damages, termination penalties, or judgment notes. These stipulations ensure that franchisees retain certain legal rights and protections under Minnesota law, irrespective of what the franchise agreement might otherwise state.
Additionally, the FDD states that nothing within the disclosure document or franchise agreement can diminish any of the 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. This clause reinforces the franchisee's legal standing and ensures that the franchise agreement does not supersede statutory rights.
The Dryject FDD also specifies a limitation on when claims can be made, noting that Minn. Stat. § 80C.17, subdivision 5, prohibits any action commencing section more than three years after the cause of action accrues. This means a franchisee has a defined window to bring legal action. Moreover, no statement or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Dryject or its representatives. This provision is designed to protect franchisees from inadvertently relinquishing their legal rights through contractual clauses.