Can Fly To Fit require a franchisee to consent to judgment notes in Minnesota?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD 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.
Source: Item 23 — RECEIPTS (FDD pages 44–134)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, if you are opening a franchise in Minnesota, Fly To Fit cannot require you to consent to judgment notes. The Minnesota Addendum to the Disclosure Document explicitly states that Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit Fly To Fit from requiring franchisees to consent to judgment notes. This protects franchisees from being forced into agreements that could be detrimental to their financial interests.
This provision is in place to ensure that franchisees operating in Minnesota are afforded certain protections under Minnesota law. It prevents Fly To Fit from imposing terms that might be considered unfair or coercive. The 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.
Prospective franchisees should be aware of these protections and ensure that the franchise agreement complies with Minnesota law. This addendum serves as an important safeguard for franchisees, ensuring they are not subjected to terms that could compromise their legal rights or financial stability. It is advisable for potential franchisees to consult with legal counsel to fully understand their rights and obligations under the franchise agreement and Minnesota law.