Can Zoomin Groomin require a franchisee to consent to liquidated damages under Minnesota law?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
Minnesota Statutes, Section 80C.21 and Minnesota Rules 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.
Source: Item 17 — g. of the Disclosure Document is modified to state that, in addition to the grounds for immediate termination specified in Item 17.h., the franchisor can terminate upon written notice and a 60 day opportunity to cure for a breach of the Franchise Agreement. (FDD pages 51–65)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, if a franchise is governed by Minnesota law, Zoomin Groomin is prohibited from requiring a franchisee to consent to liquidated damages. This protection is explicitly stated in the Minnesota Addenda section of the FDD, which supersedes any conflicting terms in the standard franchise agreement. This ensures that franchisees operating in Minnesota are not forced to agree to terms that could unfairly penalize them financially.
This provision is in place due to Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J), which aim to protect franchisees from potentially overreaching demands by the franchisor. In addition to the prohibition on liquidated damages, these laws also prevent Zoomin Groomin from requiring franchisees to conduct litigation outside of Minnesota or waive their right to a jury trial. These regulations collectively create a more balanced legal environment for franchisees within the state.
For a prospective Zoomin Groomin franchisee in Minnesota, this means that the franchise agreement cannot legally compel them to consent to liquidated damages, termination penalties, or judgment notes. This offers a degree of financial security and legal recourse, as any attempt by Zoomin Groomin to enforce such terms would be in violation of Minnesota law. Franchisees should be aware of these protections and consult with legal counsel to ensure their rights are fully protected under the Minnesota Franchise Act.