Does Minnesota law allow Auntie Annes to require litigation to be conducted outside of Minnesota?

According to Auntie Annes's 2024 Franchise Disclosure Document, Minnesota law prohibits Auntie Annes from requiring franchisees to conduct litigation outside of Minnesota. Specifically, Minn. Stat. § 80C.21 and Minn. Rule 2860.4400J prevent Auntie Annes from enforcing such a requirement. This protection ensures that Minnesota franchisees are not forced to bear the additional costs and burdens of litigating disputes in a foreign jurisdiction.

This provision is included in the Minnesota Addendum to the Disclosure Document, which modifies Item 17, "Renewal, Termination, Transfer and Dispute Resolution." The addendum explicitly states that nothing in the Disclosure Document or Franchise Agreement can reduce any rights provided to franchisees under Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided by Minnesota law. This reinforces the franchisee's right to litigate within the state.

For a prospective Auntie Annes franchisee in Minnesota, this means that any clause in the franchise agreement that might suggest or require litigation to occur outside of Minnesota is unenforceable. This offers a significant protection, as it keeps legal proceedings local, potentially reducing legal costs and making it easier for the franchisee to defend their interests. This also aligns with the general principle of franchise law that seeks to protect franchisees from overbearing or unfair contractual terms imposed by franchisors.