Can Zoomin Groomin require Minnesota franchisees to consent to liquidated damages, termination penalties, or judgment notes?
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.
- With respect to franchises governed by Minnesota law, the franchisor will comply with Minn.
Stat.
Sec. 80C.14 Subds. 3, 4, and 5 which require (except in certain specified cases), that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the franchise agreement and that consent to the transfer of the franchise will not be unreasonably withheld.
- The franchisor will protect the franchisee's rights to use the trademarks, service marks, trade names, logotypes or other commercial symbols or indemnify the franchisee from any loss, costs or expenses arising out of any claim, suit or demand regarding the use of the name.
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 franchisees are protected from certain contractual obligations that could be considered unfair. Specifically, Minnesota Statute §80C.21 and Minnesota Rule 2860.4400(J) explicitly prohibit Zoomin Groomin from requiring franchisees in Minnesota to consent to liquidated damages, termination penalties, or judgment notes. This provision ensures that Minnesota franchisees are not subjected to potentially harsh financial repercussions as a condition of their franchise agreement.
Furthermore, the Minnesota Addendum to the Franchise Agreement states that nothing within the Franchise Disclosure Document or any related agreements can diminish the rights granted to franchisees under Minnesota Statutes, Chapter 80C. This includes the franchisee's rights to specific procedures, forums, or remedies available under Minnesota law. This protection extends to the use of trademarks, service marks, trade names, logotypes, or other commercial symbols, ensuring that Zoomin Groomin will defend the franchisee's right to use these and indemnify them from any related claims.
In addition to the above protections, Minnesota law requires Zoomin Groomin to provide franchisees with specific notices regarding termination and non-renewal of the franchise agreement. Except in certain specified cases, a franchisee must receive 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal. Consent to the transfer of the franchise cannot be unreasonably withheld. These regulations aim to provide franchisees with ample time to address any issues and protect their investment in the franchise.