In Minnesota, is Bambu allowed to require litigation to be conducted outside of Minnesota?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Minnesota Statutes, Section 80C.21 and Minnesota Rule 2860.4400(J) prohibit Bambu from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring Franchisee to consent to liquidated damages, termination penalties, or judgment notes. In addition, nothing in the Franchise Disclosure Document or this Agreement can abrogate or reduce (1) any of Franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or (2) Franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. The above language has been included in this Agreement as a condition to registration. Bambu and Franchisee do not agree with the above language and believes that each of the provisions of the Agreement are fully enforceable. Bambu and Franchisee intend to fully enforce
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Minnesota Statutes, Section 80C.21 and Minnesota Rule 2860.4400(J) prohibit Bambu from requiring that litigation be conducted outside of Minnesota. This protects franchisees in Minnesota from having to travel to another state to resolve legal disputes with the franchisor. This provision is included in the agreement as a condition of registration in Minnesota.
However, the FDD also states that Bambu and the franchisee do not agree with this language and believe that all provisions of the Franchise Agreement are fully enforceable. Bambu intends to fully enforce all venue, choice-of-law, arbitration provisions, and other dispute avoidance and resolution provisions, relying on federal pre-emption under the Federal Arbitration Act. This indicates a potential conflict between Minnesota state law and Bambu's preferred approach to dispute resolution.
Despite Bambu's stated intention to enforce all provisions, the Minnesota statutes take precedence, meaning that Minnesota franchisees have the right to litigate within the state, regardless of what the franchise agreement might otherwise stipulate. Prospective franchisees in Minnesota should be aware of this protection, but also understand Bambu's intention to enforce the agreement as written to the fullest extent possible, which could lead to legal challenges regarding venue and jurisdiction.