In Minnesota, is Itan permitted to require franchisees to consent to liquidated damages, termination penalties, or judgment notes, according to Minnesota Statute Section 80C.21 and Minnesota Rule 2860.4400(J)?

According to Itan's 2025 Franchise Disclosure Document, Minnesota Statute Section 80C.21 and Minnesota Rule 2860.4400(J) prevent Itan from requiring franchisees to consent to liquidated damages, termination penalties, or judgment notes. This means that Itan franchisees in Minnesota will not be forced to agree to these terms as part of their franchise agreement. This protection is explicitly stated within the context of amendments made to the franchise documents to comply with Minnesota law.

This provision ensures that Itan franchisees in Minnesota retain certain rights and protections under state law. Specifically, they cannot be compelled to accept terms that could be financially detrimental or limit their legal recourse. This is a significant benefit for franchisees, as it prevents Itan from imposing potentially unfair financial burdens or restricting their ability to seek legal remedies.

Furthermore, the FDD states that nothing in the franchise documents can override or diminish any rights provided to franchisees under Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies available under Minnesota law. This reinforces the commitment to upholding franchisee rights within the state. It also confirms that Minnesota franchisees cannot waive any rights, nor can they consent to Itan obtaining injunctive relief, although Itan may seek such relief, with a court determining if a bond is required.

In summary, the Minnesota-specific amendments to Itan's franchise agreement are designed to protect franchisees by preventing the enforcement of clauses related to liquidated damages, termination penalties, judgment notes, and other potentially restrictive conditions. This provides a more balanced and legally sound relationship between Itan and its Minnesota franchisees.