Can Pearce Bespoke require franchisees to consent to judgment notes under Minnesota law?

According to the 2025 Pearce Bespoke Franchise Disclosure Document, Pearce Bespoke is prohibited from requiring franchisees to consent to judgment notes in Minnesota. Specifically, Minn. Stat. § 80C.21 and Minnesota Rules § 2860.4400(J) explicitly prevent Pearce Bespoke from mandating that franchisees agree to judgment notes as a condition of the franchise agreement. This protection ensures that franchisees are not forced into potentially unfair legal arrangements.

This provision is included in an addendum to the standard franchise agreement required by Minnesota law. It also states that nothing in the Franchise Disclosure Document or agreements should reduce any rights provided in Minn. Stat. Chapter 80C or rights to procedures, forums, or remedies provided by the laws of the jurisdiction. This addendum ensures that Minnesota franchisees retain all legal rights and protections afforded to them under state law, regardless of what the standard franchise agreement might otherwise stipulate.

For a prospective Pearce Bespoke franchisee in Minnesota, this means they cannot be compelled to sign any document that allows Pearce Bespoke to obtain a judgment against them without a full legal proceeding. This offers a significant safeguard against potentially overreaching actions by the franchisor and ensures a fairer balance of power in the franchisor-franchisee relationship. This is a beneficial protection for franchisees, as it prevents Pearce Bespoke from using consent to judgment notes as a means of quickly and easily enforcing financial claims against them.