Can Zoomin Groomin require a franchisee to consent to termination penalties 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, Minnesota law protects franchisees from being required to consent to certain financial penalties or legal actions. Specifically, Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) explicitly prohibit Zoomin Groomin from requiring a franchisee to consent to termination penalties. This means that Zoomin Groomin cannot include clauses in its franchise agreement that force a franchisee to agree to pay penalties if the franchise is terminated.
This protection extends to other areas as well. Zoomin Groomin is also prohibited from requiring franchisees to consent to liquidated damages or judgment notes. Furthermore, the franchise agreement cannot force a franchisee to conduct litigation outside of Minnesota or waive their right to a jury trial. These regulations ensure that Minnesota franchisees retain their legal rights and are not subjected to unfair or overbearing contractual terms.
These stipulations are included in the Minnesota Addenda to the Zoomin Groomin Disclosure Document, which takes precedence over any conflicting terms in the standard franchise agreement. This ensures that the franchisee's rights under Minnesota law are fully protected. Prospective franchisees in Minnesota should carefully review the Minnesota Addenda to fully understand their rights and protections under the law.