Does Minnesota Statute 80C.21 prohibit Kitchen Solvers from requiring the franchisee to consent to termination penalties?

According to Kitchen Solvers's 2025 Franchise Disclosure Document, Minnesota Statute § 80C.21 and Minnesota Rule 2860.4400J explicitly prohibit Kitchen Solvers from requiring franchisees to consent to liquidated damages, termination penalties, or judgment notes. This protection is designed to safeguard franchisees operating within Minnesota from potentially unfair or overreaching contractual obligations related to these specific financial penalties.

This provision means that Kitchen Solvers cannot enforce any clause in its franchise agreement that mandates a franchisee to agree in advance to pay specific penalties or damages upon termination of the agreement. This ensures that any financial repercussions resulting from termination are subject to legal scrutiny and cannot be predetermined solely by the franchisor. The law aims to create a fairer balance of power between Kitchen Solvers and its franchisees in Minnesota.

Furthermore, the FDD states that nothing in the disclosure document or the franchise agreement 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 for by the laws of the jurisdiction. This reinforces the protection offered to franchisees under Minnesota law, ensuring that their legal rights and access to legal recourse are fully preserved and cannot be undermined by the franchise agreement's terms.