What rights does a Dryject franchisee waive regarding state laws relating to franchises or business opportunities?
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, the franchise agreement cannot force a franchisee to waive certain rights, particularly those protected by state franchise laws. For instance, Minnesota law prohibits Dryject from requiring franchisees to litigate outside of Minnesota, waive jury trials, or consent to liquidated damages, termination penalties, or judgment notes. The disclosure document and franchise agreement cannot diminish a franchisee's rights under Minnesota Statutes, Chapter 80C, or their rights to procedures, forums, or remedies provided by law.
Several states have specific addenda that further protect franchisees. In Wisconsin, provisions regarding renewal and termination that conflict with the Wisconsin Fair Dealership Law are superseded by that law, which grants franchisees the right to a 90-day written notice of termination and 60 days to remedy deficiencies. Similarly, in Illinois, any provision that binds a person acquiring a franchise to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. Franchisees in Maryland cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Dryject or its representatives.
Prospective franchisees should be aware that Dryject reserves the right to challenge the constitutionality of any state law that declares provisions in the franchise agreement void or unenforceable. This means that while certain state laws aim to protect franchisees, Dryject may contest these laws in court. Franchisees should consult with legal counsel to understand their rights and the potential implications of these clauses, especially in their specific state.