In Minnesota, can Mr. Sandless require a franchisee to consent to judgment notes?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
- Item 17 of the Disclosure Document and Article 24 of the Franchise Agreement are amended by the addition of the following language to the original language that appears therein:
"Minn. Stat. Sec. 80C.21 and Rule 2860.4400J 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 agreements can abrogate or reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or franchisee's rights to any procedure, forum, or remedies provided for by the laws of jurisdiction."
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, Mr. Sandless is prohibited from requiring franchisees in Minnesota to consent to judgment notes. This protection is explicitly stated in the state-specific addendum for Minnesota, which amends Item 17 of the Disclosure Document and Article 24 of the Franchise Agreement.
This means that a Mr. Sandless franchisee in Minnesota cannot be forced to agree in advance to a judgment against them in the event of a dispute. Minnesota Statute Section 80C.21 and Rule 2860.4400J explicitly prohibit Mr. Sandless from including such a requirement in their franchise agreement. This ensures that franchisees retain their legal rights and are not compelled to concede to judgments without due process.
This provision is beneficial for prospective Mr. Sandless franchisees in Minnesota as it safeguards their rights and prevents the franchisor from imposing potentially unfair or coercive terms. It aligns with Minnesota's franchise laws, which aim to protect franchisees and ensure a fair balance of power between the franchisor and franchisee. This protection extends to other areas as well, such as prohibiting litigation outside of Minnesota and waiver of a jury trial, further solidifying the franchisee's rights within the state.