Can an Endless Summer Sweets franchisee in Minnesota be required to consent to liquidated damages?

According to Endless Summer Sweets' 2024 Franchise Disclosure Document, Minnesota franchisees cannot be required to consent to liquidated damages. The Minnesota Addendum specifically states that Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit Endless Summer Sweets from requiring franchisees to consent to liquidated damages, termination penalties, or judgment notes. This protection is in place to ensure that franchisees are not subjected to unfair financial burdens or penalties.

This provision is designed to protect the rights of franchisees within the state of Minnesota. It ensures that the franchise agreement adheres to Minnesota law, preventing Endless Summer Sweets from imposing terms that would force a franchisee to consent to financial penalties or judgments. 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 their rights to any procedure, forum, or remedies provided by the laws of the jurisdiction.

Furthermore, the addendum outlines additional protections for Minnesota franchisees, including specific notice periods for termination and non-renewal of the franchise agreement, as well as protection of the franchisee's rights to use trademarks and other commercial symbols. These measures collectively aim to create a fairer and more balanced relationship between Endless Summer Sweets and its Minnesota franchisees, ensuring compliance with state laws and regulations designed to safeguard franchisee interests.