What rights of a Bft developer under Minnesota Statutes chapter 80C are protected regarding procedure, forum, or remedies?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibits us from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial or requiring the Area Developer or Franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Disclosure Document, Multi-Unit Agreement or Franchise Agreement can abrogate or reduce any of Area Developer's or Franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or Area Developer's or Franchisee's rights to any procedure, forum or remedies provided for by the laws of the jurisdiction.
Any release required as a condition of renewal or transfer/assignment will not apply to the extent prohibited by governing law with respect to claims arising under Minn. Rule 2860.4400D.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, several protections are in place for developers and franchisees operating in Minnesota, ensuring their rights under Minnesota Statutes Chapter 80C are upheld. Specifically, the franchise agreement and related documents cannot diminish the rights to any procedure, forum, or remedies available under Minnesota law. This provision aims to provide Bft developers and franchisees with the full scope of legal protections afforded by Minnesota's franchise laws.
Bft is prohibited, except in certain specified cases, from requiring litigation to occur outside of Minnesota, ensuring that legal disputes can be resolved within the state's jurisdiction. Additionally, Bft cannot mandate the waiver of a jury trial or require consent to liquidated damages, termination penalties, or judgment notes. These restrictions are designed to protect the legal rights and recourse options available to developers and franchisees in the event of a dispute.
Furthermore, any release required as a condition of renewal or transfer/assignment will not apply to the extent prohibited by governing law with respect to claims arising under Minn. Rule 2860.4400D. This ensures that franchisees and developers are not forced to relinquish their rights under Minnesota law as a condition of continuing or transferring their franchise. These stipulations collectively reinforce the protections afforded to Bft developers and franchisees under Minnesota law, safeguarding their procedural and remedial rights.