Does Minnesota law allow Dryject to require consent to liquidated damages?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, Minnesota law does not allow Dryject to require franchisees to consent to liquidated damages. The FDD states that Minnesota Statutes and Rules prohibit Dryject from requiring a franchisee to consent to liquidated damages. This protection ensures that franchisees are not forced into agreements that could unfairly penalize them financially.
This provision is in place to protect franchisees from potentially overreaching terms in the franchise agreement. Liquidated damages clauses can sometimes be used to impose significant financial burdens on franchisees for minor infractions or disagreements. By prohibiting Dryject from requiring consent to such clauses, Minnesota law aims to create a more equitable balance of power between the franchisor and franchisee.
Prospective Dryject franchisees in Minnesota should be aware of this protection and ensure that the franchise agreement does not contain any clauses that require them to consent to liquidated damages. If such clauses are present, they are likely unenforceable under Minnesota law. Franchisees should consult with an attorney to ensure their rights are fully protected and to understand the implications of all terms in the franchise agreement.