How does Section 16.I of the Alloy Franchise Agreement change regarding litigation locations for franchisees in Minnesota?

According to the 2025 Alloy FDD, Section 16.I of the Franchise Agreement is modified for franchisees in Minnesota to comply with Minnesota statutes. Specifically, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prevent Alloy from requiring litigation to occur outside of Minnesota. Therefore, any part of the Franchise Agreement that mandates litigation outside of Minnesota is considered void for Minnesota franchisees. This change is outlined in an addendum to the franchise agreement required for Minnesota franchisees.

This modification ensures that Minnesota franchisees are not forced to litigate disputes in potentially distant or inconvenient locations, protecting their rights under Minnesota law. It reflects a commitment to adhering to state-specific regulations regarding franchising, which can vary significantly. This is particularly important for franchisees who may have limited resources to travel or engage legal counsel in other states.

Prospective Alloy franchisees in Minnesota should carefully review this addendum to understand their rights and obligations regarding dispute resolution. They should also consult with a legal professional to fully understand the implications of this modification and how it affects their franchise agreement. This addendum provides additional protection for franchisees operating in Minnesota.