Can Best Brains require a franchisee in Minnesota to waive their right to a jury trial?
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, if a franchise is governed by Minnesota franchise laws, Best Brains is prohibited from requiring the franchisee to waive their right to a jury trial. This protection is explicitly stated in the Minnesota Addendum to the Disclosure Document.
This means that any clause in the standard Best Brains franchise agreement that might suggest a franchisee waives their right to a jury trial is unenforceable in Minnesota. The Minnesota Addendum takes precedence over any conflicting terms in the main agreement, ensuring that franchisees in Minnesota retain their legal rights to a jury trial.
This provision is beneficial for prospective Best Brains franchisees in Minnesota, as it ensures they maintain all legal avenues for resolving disputes with the franchisor. It prevents Best Brains from forcing franchisees into alternative dispute resolution methods like arbitration, where they might not have the same legal protections as in a court of law.