Does Minnesota law allow Dryject to require consent to termination penalties?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- Item 17, summary columns for (v) and (w) are amended to add the following:
Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibit us 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 this Disclosure Document or agreement can abrogate or reduce any of your rights as provided for in Minnesota Statues, Chapter 80C, or your 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 Dryject's 2025 Franchise Disclosure Document, Minnesota law does not allow Dryject to require franchisees to consent to termination penalties. Specifically, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibit Dryject from including such requirements in its franchise agreements within the state of Minnesota. This protection ensures that franchisees are not forced into unfair agreements regarding financial repercussions upon termination.
This provision is beneficial for prospective Dryject franchisees in Minnesota as it prevents the franchisor from imposing potentially unreasonable financial burdens if the franchise agreement is terminated. It aligns with the broader aim of Minnesota Statutes, Chapter 80C, to protect franchisees' rights and ensure fair practices within the franchising relationship. This also extends to preventing Dryject from requiring litigation to be conducted outside Minnesota or requiring waiver of a jury trial.
Furthermore, the FDD clarifies that nothing in the disclosure document or franchise agreement can reduce any franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. This reinforces the protection afforded to Minnesota franchisees under state law, ensuring that the franchise agreement cannot override statutory rights.
In summary, a prospective Dryject franchisee in Minnesota can be assured that the franchise agreement cannot legally compel them to consent to termination penalties, thanks to the specific prohibitions outlined in Minnesota law and reiterated in the Dryject Franchise Disclosure Document.