Does Minnesota law allow Best Brains to require litigation to be conducted outside of Minnesota?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
MINNESOTA ADDENDUM TO THE DISCLOSURE DOCUMENT
As to franchises governed by the Minnesota franchise laws, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
- Minn. Stat. §80C.21 and Minn. Rule 2860.4400(J) prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Franchise Disclosure Document or agreements can abrogate or reduce (1) any of the 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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, Minnesota franchise laws prevent Best Brains from requiring franchisees to conduct litigation outside of Minnesota. This protection is explicitly stated in the Minnesota Addendum within the FDD, which takes precedence over any conflicting terms in the standard franchise agreement. This ensures that Minnesota franchisees are not forced to bear the additional costs and burdens associated with litigating disputes in a distant or inconvenient forum.
In addition to the prohibition on out-of-state litigation, Minnesota law also prevents Best Brains from requiring franchisees to waive their right to a jury trial or consent to liquidated damages, termination penalties, or judgment notes. The FDD emphasizes that no clause within the franchise documents can diminish a franchisee's rights under Minnesota Statutes, Chapter 80C, or their access to legal procedures, forums, or remedies provided by Minnesota law.
These stipulations provide significant protection for Best Brains franchisees in Minnesota, ensuring they have access to local legal recourse and safeguarding their rights within the franchise relationship. Prospective franchisees in Minnesota should carefully review the Minnesota Addendum to fully understand their rights and protections under state law.