Under Minnesota Rules 2860.4400(J), can a Remax franchisee consent to the franchisor obtaining injunctive relief?

According to the 2025 Remax Franchise Disclosure Document, Minnesota Rules 2860.4400(J) addresses the issue of injunctive relief. Specifically, the addendum to the franchise agreement for Minnesota states that a Remax franchisee cannot consent to the franchisor obtaining injunctive relief. However, Remax retains the right to seek injunctive relief. The document also clarifies that a court will determine if a bond is required in such cases. This provision is designed to protect the franchisee's rights under Minnesota law.

This means that as a Remax franchisee in Minnesota, you cannot be forced to agree in advance to allow Remax to obtain an injunction against you. An injunction is a court order that requires a party to do or cease doing a specific action. While Remax can still pursue injunctive relief through the courts, the franchisee's consent cannot be a prerequisite. This ensures that the franchisee has the opportunity to contest the injunction in court and that the court will decide if a bond is required.

The FDD also mentions other protections for Remax franchisees in Minnesota. These include prohibitions against requiring litigation to be conducted outside of Minnesota, waiving a jury trial, or consenting to liquidated damages, termination penalties, or judgment notes. These provisions collectively aim to safeguard the franchisee's legal rights and ensure fair treatment under Minnesota law. Furthermore, the franchisor must comply with specific notice requirements for termination and non-renewal of the franchise agreement, providing franchisees with adequate time to address any issues or prepare for the end of the agreement.

Prospective Remax franchisees in Minnesota should carefully review the Minnesota Addendum to the Franchise Agreement to fully understand their rights and obligations under state law. It is also advisable to consult with an attorney to discuss the implications of these provisions and how they may affect their specific circumstances. Understanding these protections can help franchisees make informed decisions and protect their interests throughout the franchise relationship.