In Minnesota, can Bb.Q Chicken require litigation to be conducted outside of Minnesota?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE ACKNOWLEDGEMENT STATEMENT
NOT FOR USE IN CALIFORNIA, MARYLAND, AND WASHINGTON
'Do not sign if the franchisee is a Maryland resident or if the franchised business will be located within the State of Maryland.
Acknowledgement of the truthfulness of the statements below are an inducement for the Franchisor to enter into a Franchise Agreement (or Multi-Unit Development Agreement). Notify Franchisor immediately, prior to acknowledgment, if any statement below is incomplete or incorrect.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee (or developer) in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the Franchisee Acknowledgment Statement includes a provision relevant to the question of out-of-state litigation. Specifically, the document states that the Franchisee Acknowledgment Statement is not for use in California, Maryland, and Washington.
The Franchisee Acknowledgement Statement indicates that no statement signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor. This provision supersedes any other term in documents related to the franchise agreement.
This acknowledgement suggests that franchisees in states other than California, Maryland, and Washington may be subject to the terms within the Franchisee Acknowledgement Statement. For a prospective franchisee in Minnesota, this means carefully reviewing the franchise agreement and related documents to understand if there are clauses that could require litigation to occur outside of Minnesota or waive rights available under Minnesota franchise law. It would be prudent to seek legal counsel to fully understand the implications of these clauses.