In Minnesota, is 7 Brew permitted to require franchisees to conduct litigation outside of Minnesota?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibit us from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring you to consent to liquidated damages, termination penalties, or judgment notes. In addition, nothing in the disclosure document or Franchise Agreement can abrogate or reduce any of your rights as provided for in Minnesota Statutes 1984, Chapter 80C, or your rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Any release required as a condition of renewal, sale, and/or transfer/assignment will not apply to the extent prohibited by applicable law with respect to claims arising under Minn. Rule 2860.4400D.
No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD pages 82–83)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, Minnesota law protects franchisees from being forced to litigate disputes outside of the state. Specifically, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibit 7 Brew from requiring franchisees to conduct litigation outside of Minnesota. This ensures that Minnesota franchisees can resolve legal issues within their own jurisdiction, which can reduce costs and logistical burdens.
This protection extends to other legal aspects as well. The same Minnesota statutes and rules also prevent 7 Brew from requiring franchisees to waive their right to a jury trial or consent to liquidated damages, termination penalties, or judgment notes. These provisions collectively safeguard the legal rights and recourse options available to franchisees operating in Minnesota.
Furthermore, the FDD states that nothing within the disclosure document or the Franchise Agreement can diminish any rights provided to franchisees under Minnesota Statutes 1984, Chapter 80C. This encompasses their rights to any procedure, forum, or remedies available under Minnesota law. This reinforces the commitment to upholding franchisee rights within the state's legal framework.
Finally, any release required as a condition of renewal, sale, or transfer of the franchise will not apply if it violates applicable law concerning claims arising under Minn. Rule 2860.4400D. Additionally, any statement, questionnaire, or acknowledgment signed by the franchisee at the start of the franchise relationship cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by 7 Brew or its representatives. This provision takes precedence over any conflicting terms in other documents executed in connection with the franchise, further solidifying franchisee protections under Minnesota law.