Can an Endless Summer Sweets franchisee in Minnesota be required to consent to judgment notes?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
MINNESOTA ADDENDUM TO DISCLOSURE DOCUMENT
In the State of Minnesota only, this Disclosure Document is amended as follows:
• Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit the franchisor 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 Franchise Disclosure Document or agreement(s) can abrogate or reduce (1) any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C or (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
With respect to franchises governed by Minnesota law, the franchisor will comply with Minnesota Statutes, Section 80C.14, Subd. 3-5, which require (except in certain specified cases) (1) that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the franchise agreement and (2) that consent to the transfer of the franchise will not be unreasonably withheld.
The franchisor will protect the franchisee's rights to use the trademarks, service marks, trade names, logotypes or other commercial symbols or indemnify the franchisee from any loss, costs or expenses arising out of any claim, suit or demand regarding the use of the name.
Minnesota considers it unfair to not protect the franchisee's right to use the trademarks. Refer to Minnesota Statues, Section 80C.12, Subd. 1(g).
Minnesota Rules 2860.4400(D) prohibits a franchisor from requiring a franchisee to assent to a general release.
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, if you are opening a franchise in Minnesota, the franchisor cannot require you to consent to judgment notes. The Minnesota Addendum to the Disclosure Document states that Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit the franchisor from requiring the franchisee to consent to judgment notes.
This addendum also clarifies that nothing in the Franchise Disclosure Document or agreements can reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or the franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Furthermore, the addendum states that Endless Summer Sweets will comply with Minnesota Statutes, Section 80C.14, Subd. 3-5, regarding termination and non-renewal notices, as well as consent to the transfer of the franchise. The franchisor will also protect the franchisee's rights to use trademarks and indemnify the franchisee from any claims regarding the use of the name, as outlined in Minnesota Statutes, Section 80C.12, Subd. 1(g).