Can All Team require a franchisee to waive a jury trial in Minnesota?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything contained in the foregoing Franchise Agreement and Franchise Disclosure Document ("FDD") to the contrary, the following provisions of the Minnesota Franchise Act shall apply to any franchise or franchisee located in the State of Minnesota, which shall control to the extent of any inconsistency:
MINN.
STAT.
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 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if a franchise is located in Minnesota, All Team cannot require the franchisee to waive their right to a jury trial. This protection is explicitly stated within the Minnesota Franchise Act, and the FDD acknowledges that the Act supersedes any conflicting terms in the franchise agreement or the FDD itself. This ensures that franchisees in Minnesota retain their legal rights to a jury trial, regardless of what the standard All Team franchise agreement might otherwise stipulate.
This provision is crucial for prospective All Team franchisees in Minnesota because it safeguards their ability to have disputes resolved by a jury of their peers. Without this protection, franchisees might be forced to accept decisions made by a judge, which could be perceived as less impartial or less favorable to the franchisee. The Minnesota Franchise Act aims to balance the power dynamic between franchisor and franchisee, ensuring a fairer legal process.
The FDD also highlights other protections afforded to Minnesota franchisees under state law, such as specific notice periods for termination or non-renewal of the franchise agreement and the right to use trademarks. These provisions collectively create a more regulated environment for franchising in Minnesota, offering franchisees a degree of security and legal recourse that might not exist in other states. All Team's acknowledgement of these state-specific regulations demonstrates their commitment to compliance and transparency in their franchising operations.
For a prospective franchisee, this means that while the standard All Team franchise agreement might contain clauses that seem to limit their legal options, those clauses are unenforceable in Minnesota to the extent that they conflict with state law. It is essential for potential franchisees to carefully review the state-specific addenda in the FDD and to consult with legal counsel to fully understand their rights and obligations under both the franchise agreement and Minnesota law.