Does Minnesota law permit Alloy to require litigation to be conducted outside of Minnesota?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Minn. Stat. § 80C.21 and Minn. Rule 2860.4400J prohibit us from requiring litigation to be conducted outside Minnesota. In addition, nothing in the Disclosure Document or Franchise Agreement can abrogate or reduce any of your rights as provided for in Minnesota Statutes, Chapter 80C, or your rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
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- No release language set forth in the Franchise Agreement shall relieve Franchisor or any other person, directly or indirectly, from liability imposed by the laws concerning franchising of the State of Minnesota, provided, that this part will not bar the voluntary settlement of disputes.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Minnesota law does not permit Alloy to require franchisees to conduct litigation outside of Minnesota. Specifically, Minn. Stat. § 80C.21 and Minn. Rule 2860.4400J prohibit Alloy from requiring litigation to be conducted outside the state. The FDD states that any part of the franchise agreement that requires litigation to be conducted outside of Minnesota is void. This protection is explicitly outlined in the addendum to the franchise agreement required for Minnesota franchisees.
This provision ensures that Alloy franchisees in Minnesota have the right to pursue legal remedies within their own state, which can reduce the costs and logistical challenges associated with litigation. It also ensures that Minnesota franchisees are not disadvantaged by having to litigate in a jurisdiction potentially more favorable to Alloy. This is a significant protection for franchisees, as it allows them to resolve disputes under the legal framework of their home state.
Prospective franchisees should carefully review the Minnesota addendum to the franchise agreement to fully understand their rights and protections under Minnesota law. They should also consult with a franchise attorney to ensure they are fully aware of the implications of this provision and how it may affect their franchise relationship with Alloy.