factual

Is a Remax franchisee in Minnesota allowed to consent to the franchisor obtaining injunctive relief?

Remax Franchise · 2025 FDD

Answer from 2025 FDD Document

The franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400(J) also, a court will determine if a bond is required.

Source: Item 6 — The amount charged for the Insufficient Funds Processing Fee in Minnesota is $30. (FDD pages 464–473)

What This Means (2025 FDD)

According to the 2025 Remax Franchise Disclosure Document, a Remax franchisee in Minnesota cannot consent to the franchisor obtaining injunctive relief. However, Remax is allowed to seek injunctive relief against its franchisees in Minnesota. This stipulation is outlined in the addendum to the franchise agreement required by the state of Minnesota. This protection is in place due to Minnesota Rules 2860.4400(J). A court will determine if a bond is required.

This means that Remax franchisees in Minnesota are protected from being forced to agree in advance to allow Remax to obtain a court order (injunctive relief) against them. Injunctive relief typically involves a court order that requires a party to do or cease doing a specific action. This rule ensures that a franchisee's rights are not unfairly compromised at the outset of the franchise relationship.

This provision is specific to Minnesota, as indicated by the addendum's title and content. Franchise agreements often contain clauses that address dispute resolution and legal remedies, but state laws can modify or override these clauses to protect franchisees. The Minnesota addendum reflects the state's effort to balance the rights and obligations between the franchisor and franchisee, preventing potential overreach by the franchisor.

Prospective Remax franchisees in Minnesota should carefully review this addendum and understand their rights under Minnesota law. They should also consult with a legal professional to fully understand the implications of this provision and how it affects their franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.