Which state's law does Section 48 of the Dryject Franchise Agreement require to be applied?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
| arks, service | |
|---|---|
| marks, trade names, logotypes or other commercial symbols or indemnify | |
| Franchise Owner from any loss, costs or expenses arising out of any claim, | |
| suit or demand regarding the use of the name.” | |
| 7. Waiver of Rights and Injunctive Relief. Under Minn. Rule 2860.4400J, | |
| the Agreement is amended to include that it shall be unfair and inequitable | |
| for any person to require a franchisee to waive his or her rights to a jury trial | |
| or waive rights to any procedure, forum, or remedies provided by the laws | |
| of the jurisdiction, or to consent to liquidated damages, termination | |
| procedures, or judgment notes; provided that the foregoing shall not bar an | |
| exclusive arbitration clause. Under Minn. Rule 2860.4400J, a franchisee | |
| cannot waive any rights or consent to the franchisor obtaining injunctive | |
| relief (although the franchisor may seek injunctive relief). Each reference in | |
| the Agreement to the phrase “Franchise Owner consents that DryJect is | |
| entitled to injunctive relief” or words of similar import shall be deleted and | |
| the phrase “DryJect may seek injunctive relief” shall be inserted in its place. | |
| 8. Jurisdiction. The following is added to Section 48: | |
| 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 Dryject's 2025 Franchise Disclosure Document, Section 48 of the franchise agreement is modified for franchisees in Minnesota. Specifically, Minnesota Statutes Section 80C.21 and Minnesota Rules 2860.4400J are added to Section 48. These additions prevent Dryject from requiring litigation to occur outside of Minnesota, mandating a waiver of jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties, or judgment notes.
Furthermore, the added stipulations ensure that nothing in the disclosure document or franchise agreement can diminish a franchisee's rights as provided in Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies available under Minnesota law. This modification is intended to protect the rights of Dryject franchisees operating in Minnesota.
For prospective Dryject franchisees, this means that if they operate in Minnesota, certain provisions of the standard franchise agreement that might conflict with Minnesota law will not apply. This ensures that Minnesota franchisees retain all the protections and rights afforded to them under Minnesota state law, particularly concerning legal proceedings and dispute resolution.