In Minnesota, can Dryject require the franchisee to consent to liquidated damages?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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 protects franchisees from being required to consent to liquidated damages. Specifically, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J explicitly prohibit Dryject from mandating that franchisees agree to liquidated damages, termination penalties, or judgment notes. This protection is in place to ensure fairness and equity in the franchise agreement.
This means that a Dryject franchisee in Minnesota cannot be forced to accept contract terms that predetermine the amount of damages they would owe in case of a breach. The FDD also states that nothing in the disclosure document or franchise agreement can reduce 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 provision offers significant protection to Minnesota Dryject franchisees, preventing the franchisor from imposing potentially unfair or punitive financial consequences through a mandatory liquidated damages clause. Prospective franchisees should carefully review the franchise agreement and disclosure document to ensure full compliance with Minnesota law.