In Minnesota, can Zoomin Groomin require the franchisee to consent to liquidated damages?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
MINNESOTA ADDENDUM TO THE FRANCHISE AGREEMENT
- Minn.
Stat. §80C.21 and Minn.
Rule 2860.4400(J) 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 (1) any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, Minnesota law has specific protections for franchisees. The Minnesota Addendum to the Franchise Agreement explicitly states that Zoomin Groomin is prohibited from requiring franchisees in Minnesota to consent to liquidated damages. This protection is rooted in Minn. Stat. §80C.21 and Minn. Rule 2860.4400(J).
This means that if a prospective franchisee is opening a Zoomin Groomin franchise in Minnesota, they cannot be forced to agree to a clause in the franchise agreement that would require them to pay a predetermined amount of damages in the event of a breach of contract. This provision is designed to protect franchisees from potentially unfair or excessive financial penalties.
Furthermore, the addendum clarifies that no part of the Franchise Disclosure Document or any related agreements can override or diminish any rights granted to the franchisee under Minnesota Statutes, Chapter 80C. It also protects the franchisee's rights to any procedure, forum, or remedies available under Minnesota law. This ensures that Minnesota franchisees receive the full protection of their state's laws, preventing Zoomin Groomin from imposing terms that would circumvent these protections.