factual

Under Minnesota law, can Flowerama require franchisees to consent to the company obtaining injunctive relief?

Flowerama Franchise · 2024 FDD

Answer from 2024 FDD Document

    1. Minnesota law prohibits us from requiring you to consent to us obtaining injunctive relief. However, we may seek injunctive relief. In addition, a court will determine if a bond is required.

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 72–77)

What This Means (2024 FDD)

According to Flowerama's 2024 Franchise Disclosure Document, Minnesota law has specific protections for franchisees. Flowerama cannot require a franchisee to consent to the company obtaining injunctive relief. However, Flowerama retains the right to seek injunctive relief in Minnesota, but the court will determine if a bond is required. This means that while Flowerama can pursue legal action to prevent a franchisee from certain actions, they cannot force the franchisee to agree to such measures in advance.

This protection is outlined in an addendum to the franchise agreement specifically for Minnesota. This addendum takes precedence over any conflicting terms in the standard franchise agreement. This ensures that Minnesota franchisees are not bound by clauses that contravene state law. The addendum also addresses limitations of claims, ensuring compliance with Minnesota Statutes Section 80C.17, Subdivision 5.

This provision is beneficial for prospective Flowerama franchisees in Minnesota as it prevents Flowerama from enforcing a blanket consent to injunctive relief, ensuring that the franchisee's rights are protected under Minnesota law. It also highlights the importance of reviewing any state-specific addenda to the franchise agreement, as these can significantly alter the terms and conditions of the franchise relationship.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.