In Minnesota, can Dryject require the franchisee to consent to termination penalties?
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, Dryject is prohibited from requiring a franchisee in Minnesota to consent to termination penalties. The FDD states that Minnesota Statutes and Rules explicitly prevent Dryject from mandating that franchisees agree to liquidated damages, termination penalties, or judgment notes. This protection ensures that franchisees operating in Minnesota are not forced into unfair contractual obligations regarding termination.
This provision is designed to protect the rights of franchisees within Minnesota, ensuring they are not subjected to undue pressure or disadvantageous terms within the franchise agreement. The inclusion of this clause reflects Minnesota's commitment to fair franchising practices and provides a legal framework that safeguards franchisees' interests. This means a Dryject franchisee in Minnesota cannot be compelled to accept penalties if the franchise is terminated.
For a prospective Dryject franchisee in Minnesota, this is a significant benefit. It means that the franchisee cannot be forced to consent to penalties related to the termination of the franchise agreement. This protection aligns with Minnesota's franchise laws, which aim to create a more equitable balance of power between franchisors and franchisees. This ensures that franchisees are not unduly penalized during termination, providing a more secure and predictable business environment.