Does Minnesota law allow Bambu to require a franchisee to waive a jury trial?
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 law impacts the ability of Bambu to enforce certain provisions in its franchise agreement. Specifically, Minnesota Statutes, Section 80C.21 and Minnesota Rule 2860.4400(J) explicitly prohibit Bambu from requiring a franchisee to waive their right to a jury trial. This means that if a Bambu franchisee in Minnesota were to take legal action against the company, the franchisee retains the right to have the case decided by a jury.
This protection extends further, as the FDD states that nothing in the franchise agreement can reduce any of the franchisee's rights as provided by Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided by Minnesota law. This clause is included in the agreement as a condition of registration in Minnesota, indicating the state's commitment to protecting franchisees' rights.
However, the FDD also reveals a conflict. Bambu states that it does not agree with the protective language required by Minnesota and asserts its intent to fully enforce all provisions of the agreement, including those related to dispute resolution, venue, and choice of law. Bambu indicates it intends to rely on federal pre-emption under the Federal Arbitration Act, suggesting the company may attempt to enforce mandatory arbitration clauses, which could potentially circumvent the franchisee's right to a jury trial, despite state law. This creates a potential legal ambiguity for Minnesota franchisees.