In Minnesota, can Zoomin Groomin require the franchisee to consent to termination penalties?
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 the 2025 Zoomin Groomin Franchise Disclosure Document, Minnesota law includes specific protections for franchisees. The Minnesota Addendum to the Franchise Agreement explicitly states that Zoomin Groomin is prohibited from requiring franchisees to consent to termination penalties. This protection is enshrined in Minn. Stat. §80C.21 and Minn. Rule 2860.4400(J).
This means that if you are considering opening a Zoomin Groomin franchise in Minnesota, you cannot be forced to agree to penalties if the franchise agreement is terminated. This provision is designed to protect franchisees from potentially unfair or overly burdensome financial repercussions in the event of termination.
Furthermore, the FDD states that nothing in the disclosure document or agreements can reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or the franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. This reinforces the commitment to upholding franchisee rights within the state.