Must arbitration be conducted on an individual basis for Angry Chickz franchise disputes?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
2. Choice of Forum and Law; Waiver of Right to Jury Trial or Termination Penalties. The following statements are added to Item 17:
Minnesota Statute 80C.21 and Minnesota Rule 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. In addition, nothing in the Franchise Disclosure Document or agreement(s) can abrogate or reduce (1) any of the franchisee's rights as provided for in Minnesota Statute 80C or (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
The franchisee cannot consent to the Franchisor obtaining injunctive relief. The Franchisor may seek injunctive relief. See Minnesota Rule 2860.4400(J). Also, a court will determine if a bond is required.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
Based on the 2025 Angry Chickz Franchise Disclosure Document addendum for the state of Minnesota, Minnesota Statute 80C.21 and Minnesota Rule 2860.4400(J) explicitly prohibit Angry Chickz from requiring litigation to be conducted outside of Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes.
Furthermore, the disclosure states that nothing in the Franchise Disclosure Document or agreements can reduce any of the franchisee's rights as provided for in Minnesota Statute 80C or franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. The franchisee cannot consent to Angry Chickz obtaining injunctive relief; however, Angry Chickz may seek injunctive relief, and a court will determine if a bond is required.
These stipulations ensure that Minnesota franchisees retain their legal rights and protections under Minnesota law, preventing Angry Chickz from imposing unfair or restrictive conditions regarding dispute resolution, jury trials, or financial penalties. This addendum provides additional security for franchisees operating in Minnesota.