Can Pearce Bespoke require a franchisee in Minnesota to consent to judgment notes?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Minn. Stat. § 80C.21 and Minnesota Rules § 2860.4400(J) prohibit us from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring you to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in this Franchise Disclosure Document or agreement(s) shall abrogate or reduce (1) any of your rights as provided for in Minn. Stat. Chapter 80C or (2) your rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, if you are a franchisee in Minnesota, Pearce Bespoke is prohibited from requiring you to consent to judgment notes.
Specifically, the FDD states that Minnesota Statutes § 80C.21 and Minnesota Rules § 2860.4400(J) prevent Pearce Bespoke from requiring franchisees to consent to judgment notes. This protection is in place to safeguard the franchisee's rights and ensure fair practices within the franchise agreement.
This means that Pearce Bespoke cannot include any clause in the franchise agreement that forces you to agree in advance to a judgment against you in case of a dispute. This provision is designed to protect franchisees from potentially overbearing franchisor actions and ensures that all legal proceedings are conducted fairly and without undue pressure on the franchisee.