Is Eos Worldwide prohibited from requiring a franchisee to consent to liquidated damages, termination penalties, or judgment notes under Minnesota law?

According to the 2025 Eos Worldwide Franchise Disclosure Document, Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) explicitly prohibit Eos Worldwide from requiring franchisees to consent to liquidated damages, termination penalties, or judgment notes. This protection is in place to safeguard the financial interests of franchisees operating in Minnesota.

This means that Eos Worldwide cannot include clauses in its franchise agreement that would force a franchisee to agree in advance to specific financial penalties in case of contract breaches or termination. Similarly, the franchisee cannot be compelled to consent to judgment notes, which are essentially confessions of judgment that could allow Eos Worldwide to seize assets without a full legal proceeding.

For a prospective Eos Worldwide franchisee in Minnesota, this is a significant benefit. It ensures that any disputes or termination issues will be resolved through fair legal processes, rather than pre-determined penalties that might be unfavorable to the franchisee. This provision provides a level of financial security and legal protection for franchisees operating within the state of Minnesota.