In Minnesota, can Alloy require litigation to be conducted outside of Minnesota?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Nothing in the Area Development Agreement can abrogate or reduce any of Developer's rights as provided for in Minnesota Statutes, Chapter 80C, or Developer's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. In addition, Minn. Stat.§ 80C.21 and Minn. rule 2860.4400J prohibit Franchisor from requiring litigation to be conducted outside Minnesota.
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- Minnesota Rule 2860.4400D prohibits Franchisors from requiring franchisees to assent to a general release. The Area Development Agreement is modified accordingly, to the extent required by Minnesota law.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Minnesota franchisees are protected by Minnesota statutes and rules that prevent Alloy from requiring litigation to occur outside of the state. Specifically, Minn. Stat.§ 80C.21 and Minn. rule 2860.4400J explicitly prohibit Alloy from mandating that litigation be conducted outside Minnesota. This protection is integrated into the franchise agreement through an addendum for Minnesota franchisees, ensuring that any clause in the standard agreement requiring out-of-state litigation is void.
This provision ensures that Alloy franchisees in Minnesota have the right to pursue legal remedies within their own state, avoiding the increased costs and logistical challenges associated with litigating in a different jurisdiction. This is a significant benefit for franchisees, as it levels the playing field and makes it more feasible to address disputes with the franchisor.
This protection is relatively common in franchise agreements, as many states have franchise-specific laws designed to protect franchisees' rights. Prospective Alloy franchisees in Minnesota should carefully review the Minnesota addendum to the franchise agreement to fully understand their rights and protections under state law.