What does Minnesota Rule 2860.4400(D) prohibit Beauty Bungalows from requiring of a franchisee?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
Minnesota Statute Section 80C.21 and Minnesota Rule 2860.4400J prohibit the franchisor from requiring litigation to be conducted outside of Minnesota.
In addition, nothing in the FDD or Franchise Agreement can abrogate or reduce any of your rights as provided for in Minnesota Statutes, Chapter 80C, or your rights to any procedure, forum, or remedies provided for by the laws of Minnesota.
Minn.
Rule Part 2860.4400J prohibits a franchisee from waiving his rights to a jury trial or waiving his rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction, or consenting to liquidated damages, termination penalties or judgment notes.
Any provision in the Franchise Agreement which would require you to waive your rights to any procedure, forum or remedies provided for by the laws of the State of Minnesota is deleted from any agreement relating to Franchises offered and sold in the State of Minnesota; provided, however, that this paragraph will not affect the obligation in the Franchise Agreement relating to arbitration.
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, Minnesota Statute Section 80C.21 and Minnesota Rule 2860.4400J prohibit Beauty Bungalows from requiring litigation to be conducted outside of Minnesota. This means that any clause in the franchise agreement that forces a franchisee to resolve disputes in a state other than Minnesota is void. This protects Minnesota franchisees from having to travel to another state to resolve legal issues with Beauty Bungalows.
Additionally, Minn. Rule Part 2860.4400J prohibits a franchisee from waiving their rights to a jury trial or waiving their rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction, or consenting to liquidated damages, termination penalties or judgment notes. This ensures that franchisees retain their legal rights and protections under Minnesota law.
Any provision in the Franchise Agreement which would require a franchisee to waive their rights to any procedure, forum or remedies provided for by the laws of the State of Minnesota is deleted from any agreement relating to Franchises offered and sold in the State of Minnesota; provided, however, that this paragraph will not affect the obligation in the Franchise Agreement relating to arbitration.