Can Fly To Fit require a franchisee in Minnesota to consent to judgment notes?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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 a franchisee is operating in Minnesota, Fly To Fit is prohibited from requiring the franchisee to consent to judgment notes. This protection is explicitly stated in the Minnesota Addendum to the Disclosure Document.
This means that Fly To Fit franchisees in Minnesota are safeguarded against being forced to agree to a judgment note, which could allow the franchisor to directly obtain a judgment against them without a full trial. This provision ensures that franchisees retain their rights to a fair legal process and are not subjected to potentially coercive financial agreements.
Furthermore, the Minnesota Addendum also reinforces other protections for franchisees in the state, such as prohibiting litigation outside of Minnesota, waiver of a jury trial, or consent to liquidated damages or termination penalties. These stipulations collectively aim to create a more balanced and equitable relationship between Fly To Fit and its Minnesota-based franchisees, aligning with Minnesota Statutes, Chapter 80C.