In Minnesota, can a Fly Fitness franchisee consent to the franchisor obtaining injunctive relief?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- To the extent of any inconsistencies, Article 20, Dispute Resolution, of the Franchise Agreement is hereby amended to state:
"Franchisor cannot require Franchisee to: (i) conduct litigation outside Minnesota, (ii) waive a jury trial, or (iii) consent to liquidated damages, termination penalties or judgment notes. Nothing in this Franchise Agreement shall abrogate or reduce (1) any of Franchisee's rights as provided for in Minn. Stat. Chapter 80C or (2) Franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. Franchisee cannot consent to Franchisor obtaining injunctive relief. Franchisor may seek injunctive relief."
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a franchisee in Minnesota cannot consent to Fly Fitness obtaining injunctive relief. However, Fly Fitness retains the right to seek injunctive relief against its franchisees in Minnesota. This information is part of an amendment to the Fly Fitness franchise agreement required by the state of Minnesota, specifically addressing inconsistencies between the standard agreement and Minnesota law.
This amendment ensures that the Fly Fitness franchise agreement complies with Minnesota Statutes Chapter 80C and Minnesota Rules 2860.4400(J), which protect franchisees from certain contractual obligations. These protections include prohibiting Fly Fitness from requiring franchisees to conduct litigation outside of Minnesota, waive a jury trial, or consent to liquidated damages, termination penalties, or judgment notes.
For a prospective Fly Fitness franchisee in Minnesota, this means that certain standard clauses in the franchise agreement that might appear to allow the franchisee to consent to injunctive relief are unenforceable. While Fly Fitness can still pursue injunctive relief, the franchisee's agreement to such relief is not binding. This provision aims to balance the franchisor's need to protect its brand and system with the franchisee's rights under Minnesota law.